B100 Derivatives Exchange in the Works to Steady Prices

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January 15, 2020

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by Yuthana Praiwan (Bangkok Post) Feasibility of futures undergoing study — The Energy Ministry plans to set up regulations for a B100 derivatives exchange in the country’s commodity market to reduce fluctuation of palm oil prices.

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“Crude palm oil in Thailand relies on daily prices set up by palm oil crushers, so this plan would be a game changer in promoting B100 futures as derivatives if implemented,” he said.

Mr Sontirat is confident B100 futures will be another tool in stabilising prices of palm oil nuts and crude palm oil after this sector suffered from surplus output, lowering prices for a couple of years.

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Under this plan, local B100 will be dyed before being blended with diesel oil for B7, B10 and B20.

The B100 dye will help authorities spot crude palm oil that has been smuggled in Thailand.

Mr Sontirat said the ministry has promoted biodiesel B10 as a fundamental diesel at local petrol stations since early January.

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Mr Sontirat said the ministry will continue to push B10 as a fundamental diesel, even though the pricing for palm oil nuts and crude palm oil is perceived as within normal levels.

He said the ministry plans to promote gasohol E20 as a fundamental benzene this year, but the matter needs to be discussed with stakeholders before any agreement. This move would mean either gasohol 91 or 95 would be phased out from petrol stations before E20 is promoted. READ MORE

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