Thailand Promotes E20 Fuel to Cut Costs and Reduce Oil Dependence

Thailand’s Ministry of Energy has adjusted subsidies from the Oil Fuel Fund (OFFO) to encourage drivers to switch to gasohol E20, making it more affordable while increasing the price of standard E10 fuel.

E20 contains 20% ethanol — double the amount found in E10 — and since the second half of March, the price gap between E20 and regular 95-grade gasohol has widened to about 5 baht per liter. The move is aimed at reducing reliance on petroleum amid rising global oil prices.

According to the government, although E20 may result in slightly higher fuel consumption due to its ethanol content, the difference is minimal in real-world driving. The cost savings, however, remain noticeable at around 5 baht per liter.

E20 is already widely available at fuel stations across Phuket. Unlike E85, it is compatible with most modern cars and motorcycles, which are typically designed to support this type of fuel.

On March 22, Thai authorities released an updated list of vehicles and motorbikes suitable for E20 usage, helping drivers better understand compatibility.

Officials also emphasized that ethanol used in E20 is produced domestically. This not only supports local agriculture but also reduces the need for crude oil imports and strengthens the country’s energy reserves.