Thailand Pushes B20: 7 Baht per Litre Cheaper, Sold at 600 Stations, Standard Diesel Back to B7

Bangkok — Thailand is expanding the use of palm-based B20 biodiesel to reduce its dependence on imported oil. As of Thursday, 21 May 2026, B20 was selling at about 7 baht per litre below conventional diesel at more than 600 fuel stations along major transport routes, and the Thai Automotive Industry Association (TAIA) confirmed that 1,135 vehicle models from 13 major brands can use B20 without losing their warranties, according to Bioenergy Times.

The move builds on an earlier step: in March 2026 Thailand's Ministry of Energy raised the standard diesel specification from B5 to B7 amid pressure on global energy markets, Pattaya Mail reported, citing the state news agency NNT.

Back from B5 to B7, then subsidies for B20

The return to B7 reversed a November 2024 decision, when Thailand's Energy Policy and Planning Office cut the blend from B7 to B5 because of soaring palm oil prices, as reported by Biofuels Digest. By then Thailand had already removed B10 from the pumps in May 2024, leaving only B7 and B20.

On 11 March 2026, Pattaya Mail reported that the Ministry of Energy had raised the biodiesel content of diesel from 5% to 7% to increase the use of palm-based fuel and reduce reliance on imported crude. The government also widened the price gap between E20 and E10 gasoline to encourage drivers to switch to the higher biofuel blend. Officials said there was no fuel shortage, although panic buying had temporarily lifted demand at some stations.

At the end of March the government added incentives for B20. Rachada Dhnadirek, Assistant Minister to the Prime Minister's Office, said on 30 March 2026 that the Fuel Fund Executive Committee had introduced a price subsidy making B20 about 5 baht per litre cheaper than standard B7 diesel. The main targets are the logistics and industrial sectors, which face high energy costs. Bangchak began selling B20 at its Phra Khanong depot and PTT Oil and Retail Business at its Songkhla and Saraburi depots, while Shell was due to follow in early April.

Note: the reported price gap differs, at about 5 baht per litre against B7 in late March and about 7 baht per litre against conventional diesel in the 21 May report. The sources do not explain the difference.

Palm oil supply seen as sufficient

Bioenergy Times reported that eight major fuel retailers have committed to expanding B20 availability, with a target of more than 1,000 stations. The government's feedstock estimates:

• Oil palm fruit output: 21.87 million tonnes.
• Crude palm oil (CPO) output: about 3.94 million tonnes.
• CPO left for bioenergy after domestic, industrial and export needs: about 1.49 million tonnes.
• CPO needed if B20 captures 10% of national diesel consumption: about 1.23 million tonnes a year.

Adisak Choosuk, Deputy Director General of the Department of Alternative Energy Development and Efficiency (DEDE), said Thailand has enough palm oil to expand biodiesel production without affecting food supply. TAIA Chairperson Yuphin Boonsirichan said motorists with approved vehicles can switch to B20 while keeping standard manufacturer warranties. The same report linked the push to supply disruptions tied to tensions involving the US, Israel and Iran.

A mirror for Indonesian policy

Thailand cut its biodiesel blend when palm oil prices were high, then raised it again when oil prices came under geopolitical pressure. The pattern shows how biodiesel mandates in palm-producing countries are often used to balance food prices, energy prices and farm incomes. The Thai government itself says the B20 push should lift palm oil demand, stabilise prices and raise farmers' incomes.

Unlike Thailand, which offers subsidised B20 as a voluntary option alongside B7, Indonesia applies a single national mandate across all diesel. Blend levels in different countries can be compared on the biodiesel regulation page.