Thailand’ s Oil Fuel Fund was originally established to curb oil prices in case of increase. However, excessive expenditure has caused the fund to be at a deficit of THB 58.4 billion( AUD $ 2.5 billion).
In May 2026, deputy permanent secretary of Thailand’ s Energy Ministry, Veerapat Kiatfuengfoo announced that the government will restart promotion of B20 biofuels. It previously endorsed B20 biofuels when the Ukraine-Russian conflict impacted fuel supply worldwide. Alongside B20 usage, the government will also promote E20 gasohol.
" Promoting B20 is a strategic move that links our grassroots economy directly to our energy goals. It boosts demand for domestic crops, stabilises prices and reduces long-term dependence on imported energy," Mr. Veerapat said at the 2026 Bangkok Post Economic Forum.
Currently, B20 is available at around 600 fuel stations across Thailand. The Thai government aims to expand B20 availability to 1,000 stations within the month. To further encourage Thai motorists, the government priced B20 cheaper than regular diesel, at THB 35.20( AUD $ 1.51) per litre.
To support this initiative, several members of the Thai Automotive Industry Association( TAIA) confirmed that more than 1,135 of their collective models are compatible with B20.
| Indonesia
Indonesia is the world’ s top palm oil producer. Its promotion of biofuels started in 2008, with an initial blend of 2.5 per cent palm oil with diesel fuel. Designed to stimulate local productions and plantations, the Indonesian government planned for a substantial amount of its crude palm oil( CPO) to be used domestically. This would, in turn, prompt more investments into the downstream of local refineries, facilities, and storage systems.
Under the administration of President Prabowo Subianto, the government increased its biofuel mandate to 40 per cent in 2025. This year, it plans to accelerate its required blend from 40 per cent( B40) to 50 per cent( B50). The B40 program mandated blending diesel with 40 per cent palm oil, a significantly higher blend than Malaysia’ s B15.
According to President Prabowo, the transition from B40 to B50 will allow Indonesia to save up USD $ 20 billion( AUD $ 28 billion).
Last April, Minister of Agriculture Andi Amran Sulaiman announced that Indonesia will halt diesel imports starting 1 July alongside the start of the official increase to B50. Instead, Indonesian motorists will have to rely on a 5 per cent ethanol and gasoline blend and B50. To develop the local fuel industry even further, the government will work with PTPN IV, a state-owned palm plantation.
34 ISSUE 59 JUNE 2026 / WWW. AFMA. ORG. AU