Ynsugar, March 2026
Thailand’s sugar industry is urging the government to adopt E20 gasoline—fuel containing 20% ethanol—as the nation’s primary fuel standard, a move that could reduce crude oil imports by more than one billion liters annually and provide a buffer against volatile global energy markets.
Industry Coalition Presents Unified Proposal
The Sugar Miller Associations Coordination Committee (TSMC), representing Thailand’s major sugar producers, has called on the government to elevate agricultural renewable energy to a national priority. The proposal comes as Thailand seeks to reduce its heavy reliance on imported energy, which currently accounts for 60% to 70% of the country’s consumption.
At the heart of the proposal is a nationwide transition to E20 as the standard fuel option. According to industry estimates, this shift would cut daily crude oil imports by 2.9 million liters—equivalent to approximately 1.06 billion liters per year. The coalition is also advocating for expanding biomass power generation from sugarcane leaves and agricultural waste to its full potential of 650 megawatts, replacing natural gas-fired electricity production.
Ethanol Demand Set to Nearly Double
If E20 adoption becomes widespread, daily ethanol demand is projected to surge from the current 3.5 million liters to 6.4 million liters. Industry leaders say this increase would stimulate domestic economic growth and create additional income streams for more than 420,000 farming households across the country.
Thai ethanol producers are already preparing for the anticipated demand increase. According to Suriya Kovasuola, president of the Thai Tapioca Ethanol Association, manufacturers stand ready to support the policy shift. Thailand currently operates 28 ethanol plants with a combined daily capacity of 7.2 million liters, of which 50% to 60% remains unused.
Global Context Driving Policy Shift
The government’s push for E20 comes amid heightened concerns over global oil price volatility and potential supply disruptions, particularly related to shipping restrictions through the Strait of Hormuz stemming from regional tensions.
“During periods of dramatic global crude oil market fluctuations, E20 will help stabilize retail prices at gas stations,” said Kitisak Watanawikin, honorary president of the Thai Ethanol Manufacturer Association.
The industry coalition has pointed to successful international precedents, noting that Brazil has maintained E27 as its minimum standard for decades, while India—a regional peer—is actively pursuing its own E20 targets.
Agricultural and Environmental Benefits
Thailand boasts over 11 million rai (approximately 1.76 million hectares) of sugarcane cultivation, producing around 92 million tons of sugarcane annually. The sugar industry contributes approximately 123 billion baht to the Thai economy, representing nearly 8% of agricultural output.
Beyond fuel reform, the industry is promoting a system for purchasing sugarcane leaves for power generation. This initiative currently generates about 1.2 billion baht in additional annual income for farmers while helping reduce field burning—a major contributor to PM 2.5 air pollution that plagues the country during harvest season.
Government Signals Support
The TSMC noted encouraging signals from the government, including a recent decision by the Energy Policy and Planning Office to increase the biodiesel (B100) blending ratio from 5% to 7%, effective March 14, 2026.
Energy officials plan to encourage broader E20 adoption by maintaining its price below that of Gasohol 91 and Gasohol 95, which contain only 10% ethanol. Caretaker Energy Minister Authapon Rekpibulon indicated the government aims to widen the price differential to approximately 5 baht per liter to accelerate consumer uptake.
However, the industry is calling for a more concrete legal framework and long-term policy commitments to encourage sustainable investment in the sector.
Disclaimer: The data and statistics cited in this article are sourced from Thai media outlets. The views and opinions expressed herein represent those of the respective industry associations and officials quoted, and are provided for informational purposes only. This article does not constitute investment, policy, or professional advice. Readers are encouraged to consult original sources and conduct independent verification before making any decisions based on this information.
