Press Releases

Mr. Pongchai Chaichirawiwat, CEO of BBGI Public Company Limited (BBGI), a group of biofuel production companies and the company under the group of BCP Corporation Public Company Limited (BCP), disclosed that the present plunge of the palm oil price had affected the biodiesel price to be closed to the diesel price at the refinery gate (wholesale price) which excluded tax and other funds. Thus, with the increase of the palm oil proportion mixed with the biodiesel from 7% to 10% or 20% would not affect the consumers’ price. He added that the government should rapidly spiculate the quality of biodiesel to serve the crude palm oil proportion increase, and BBGI had already prepared for the production process improvement to serve the changed quality of biodiesel. However, the production cost might be increased but it would provide more benefits in the long run by supporting the growth of the country’s biodiesel consumption without causing any affect to engine or the environment.

Nowadays, the local crude palm oil volume produced to the market is high when it is compared with the demands from the consumption and the energy sector while the global crude palm oil price is plunged. This also causes the halt of the crude palm oil export and leads to the rise of the crude palm oil inventory of 30,00 – 40,000 tons per month, leading to the country’s palm oil inventory to reach 400,000 tons comparing to the appropriate level of 250,000 tons. Every 1% increase of the proportion mixed with the biodiesel can absorb the surplus crude palm oil approximately 15,000 tons per month.

“As we are a company in the private sector and the biodiesel producer, in our opinion, we see the increase of the proportion mixed with the biodiesel is the stimulation of the local palm oil consumption which can replace the export and benefit the long-term crude oil price stability, as well as help reduce the deficit of the country”, said Mr. Pongchai.