Determination of Biodiesel Prices in Thailand

Abstract

Biodiesel is a diesel equivalent fuel produced from biological feed stocks, acting as a substitute for petroleum or fossil diesel. Biodiesel production in Thailand began in 2005, with prices stabilizing after 2008. Biodiesel, along with other biofuels, plays a role in Thailand’s Alternative Energy Development Plan (AEDP). The purpose of this study is to examine factors in the Thai biodiesel prices (2009-2014). The study assessed factors in downstream biodiesel prices at consumer locations like gas stations. The price factors assessed in the study included ex-refinery prices, excise taxes, municipal taxes, oil fund contributions, energy conservation fund conributions, marketing margin and exchange rate (USD). Regression results showed that all of these factors were significant (r2 = 0.867). The implication of the study is that while most of the retail price of biodiesel in Thailand is attributable to cost factors, there is some unexplained variance in price. This offers an opportunity for future research.

Forecasting of Biodiesel Prices in Thailand Using Time Series Decomposition Method for Long Term From 2017 to 2036

“…The most significant factor was the ex-refinery price, while the least was the marketing margin. The study also showed that while biodiesel's consumer price in Thailand can be mostly attributed to cost factors, there was some unexplained variance in price (Laung-iem and Thanarak, 2016).…”