PM: Thailand to import low-priced diesel from Russia

BANGKOK, July 13 (TNA) -- The Thai government is negotiating the possibility of importing diesel fuel from Russia, Prime Minister Samak Sundaravej said Sunday.

Mr. Samak said during his weekly TV and radio address that although the quality of Russian diesel is slightly lower to that of the diesel currently on the market in Thailand, its price is about Bt8 per litrecheaper than the current retail price here.

Presently, diesel sells at retail for Bt44.24 per litre.

The first lot of Russian diesel is expected to arrive in Thailand during the next two months and will be sold only to cooperatives, he added.

Meanwhile, Theerachai Saenkaew, deputy minister for agriculture andcooperatives, said the cabinet had allocated a budget of Bt25 billion to be used to promoted growing crops used to manufacture ethanol and bio-diesel.

Of the total budget, Bt13 billion will be spent on promoting the growing of sugarcane for ethanol and bio-diesel production, Bt9 billion to grow cassava and the rest of the budget for growing palm oil, said Mr. Theerachai.

Currently, eight ethanol plants in Thailand are producing 1.22 millionlitres daily.

The number of refineries will increase to 17 with a combined production of 2.7 million litres daily by the end of 2008.

The present demand for ethanol in the country is about 700,000 litres daily, while the balance is exported.