Commerce-Energy Ministry Hope Oil Palm Price in Thai Market Will Be Raised to 3 Baht/Kg in April 2019.
1-3-2019–Energy and Commerce Minister expected Palm fresh fruit price willincreased in April this year while continue to balance Palm oil stock at around 200,000 tons and no palm oil influx from Malaysia.
The expecting to push oil palm price higher is seems closing to the truth after the promotion pushing B20 consumption to 15 million liter/day in February, absorb 2 million tons/ year CPO from the palm oil stock added with EGAT’s Bangpakong power plant absorb 160,000 tons CPO for its power generation,including the three more months extension of 5 baht/ lite discount of B20 promotion until May 2019.
Today at Energy Ministry Mr.Siri Jirapongphan Energy Minister together with EGAT and Commerce Vice Minister Ms.Chutima Boonyaprapatsorn with Internal Trade Department director general and Fuel Oil traders joined follow up the oil palm balancing measure according to government policy to push up the palm fresh fruit price to be continue to maintain sustaining at no less than 3 baht/ kg.
Energy Minister called Fuel Oil traders to quicken expand the gas station install B20 dispenser from total 42 B20 dispensers ; PTTOR 5, Bangchak 21 and SUSCO 16 dispensers.While Shell Thailand and PTG Energy., PCL informed that they plan begin provide dispensers to have B20 diesel ready to sell in March this year.
Energy Ministry target to increase B20 sales volume from 20 million liter in February to 30 million liter in March and 90 million liter /month with in May 2019, expect to absorb 1.6 million tons/year crude palm oil.
EGAT report the progress of Palm Oil sourcing for Bangpakong Power plant that EGAT had signed contract with 23 seller to gain 118,000 tons of crude palm oil under the condition that it must be continue deliver 30,000 tons/month, now 24,000 tons had delivered to Bangpakong power plant and 16,000 tons of the fuel had been used for power generation. Today 160,000 tons of crude palm oil had been collected by the support of Internal Trade Department of Commerce Ministry, while EGAT and Commerce Ministry is keep follow up to be confident that the palm oil miller who selling crude palm oil to EGAT will continue to absorb palm fresh fruit from palm farmers at 3.20-3.34 Baht/kg according to the contract which is higher than the market price.
Commerce Minister disclosed that it could be possible for the market price of oil palm fresh fruit to be raise up to over three baht/Kg in April to May as target by the reason that now there are no sign of the crude palm oil smuggling from Malaysia by the reason that now there are no report from border securities about oil palm and palm oil smuggling at the border and now the oil palm and palm oil in Thailand is not much higher than the price in Malaysia.
The CPO price in Thailand is 14.88 baht/liter compare with 15.27 baht / liter in Malaysia as of 28 February 2019 while the price of 18% heat oil palm fresh fruit in Thailand is about 2.50-2.60 Baht/Kg compare with 2.70-2.75 Baht/Kg in Malaysia, then it has no reason for Malaysian’s palm oil to smuggling in to Thailand, according to Commerce Ministry.
