PTT, Banchak to buy surplus of palm oil

November 4th, 2008 - 11:18 am ICT by Amrit Rashmisrisethi  

Minister of Energy stated oil companies have been prepared to buy over one million litres of raw palm oil from farmers starting this week, while officials of three relevant ministries-agriculture and cooperatives, commerce and energy will meet today (November 4) to map out measures to resolve the prevailing low palm oil’s price.

Dr. Wannarat Channukul, the Minister of Energy, said on Monday (November 3) that PTT and Banchak Petroleum groups were ready to buy raw palm oil and biodiesel B 100 from farmers at a combined 1.6 million litres. PTT group, including PTT, IRPC, and Thai Oil, has announced to buy 500,000 litres of biodiesel B 100 each.

Banchak announced to buy 600,000 litres of raw palm oil at 22 baht per litre. Thai Oleo Chemical Co., Ltd. (TOL) will purchase 500,000 litres of raw palm oil.

The move, he said, was expected to reduce surplus of palm oil up to around 2,000 tons from about 10,000 tons of surplus at the moment. It would help stabilizing the raw palm oil’s price.

The ministry, he said, was considering to widen the price gap of biodiesel B 2 and B 5 from current one baht per litre.

Source : National News Bureau, Public Relations Department of Thailand

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