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New Cars May Need To Be E20-Compatible
By Mr Ethanol | November 26, 2007
Bangkok Post:
Car manufacturers could be required to upgrade engine capabilities for new cars to meet E20 gasohol standards, according to Energy Minister Piyasvasti Amranand. He said the ministry would hold talks with the Industry Ministry about the possibility of requiring auto assemblers to certify new cars for E20 consumption.
The government plans to roll out E20 gasohol, a mix of 20% ethanol and 80% petrol, in January. Local petrol stations currently sell E10 gasohol, a blend of 10% ethanol.
Mr Piyasvasti said the Department of Energy Business was in the process of drafting quality specifications for E20 gasohol for oil traders and auto assemblers.
The State Oil Fund was also considering the appropriate tariff charges for the new fuel. The oil fund currently collects tariffs of four baht per litre for premium petrol, 3.30 baht for regular petrol and 0.90 baht for diesel.
In contrast, a tariff of just 0.22 to 0.30 baht per litre is collected on gasohol, resulting in a significant price savings for motorists at the pump.
The two state-owned energy firms _ PTT Plc and Bangchak Petroleum _ are already preparing for the introduction of E20 commercial sales next year. Bangchak plans to soon launch market tests for the new fuel at four to five pump stations in Bangkok.
Automakers, meanwhile, have a separate incentive to make ethanol-friendly cars. Starting Jan 1, excise tariffs for E20-compliant vehicles will be cut by five percentage points for all engines.
Over the past two weeks, both Ford and Honda have announced plans to reduce retail prices for their E20 Focus and E20 Accord models, respectively.
Topics: Cars, Ethanol, Technology, Trends |
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