Bangchak Group Proposes 20% Biofuel Blend to Boost Thai Economy

At the 'New Energy for Thailand' forum held on August 26, 2026, Chaiwat Kovavisarach, CEO of Bangchak Group, highlighted the potential of 'drop-in' biofuels to strengthen Thailand's energy resilience. According to Khaosod Online, the proposal suggests that integrating a 20% biofuel blend could generate 153 billion baht in economic value—approximately 2% of the national GDP—while simultaneously reducing oil import costs by 63 billion baht.

Chaiwat emphasized that as Thailand navigates geopolitical uncertainties and the rising energy demands of AI, the transport sector requires a diversified energy strategy. Currently, transport accounts for 41% of Thailand's final energy consumption, with 76% of primary oil usage concentrated in this sector. Consequently, Bangchak argues that the transition should not rely solely on electric vehicles but must also incorporate low-carbon fuels to ensure a stable energy supply.

For residents and travelers, this initiative signals a potential shift in the composition of fuel available at service stations, aimed at balancing environmental goals with economic stability. While the proposal outlines significant macroeconomic benefits, it remains to be confirmed how the government will integrate these targets into national energy policy and what specific timeline will be established for the widespread adoption of these biofuel blends.