Thailand Jan 16 - IN a bid to reduce the country’s reliance on oilimports, the Ministry of Energy is looking to encourage motorists toswitch to biodiesel in a plan which will be unveiled to the Cabinettomorrow.

Energy Minister Prommin Lertsuridej said under the proposal, biodieselwill be a mixture of 90 percent diesel and 10 percent crop-derived oil.

Currently, Thai motorists use 31,000 million litres of diesel annually butthe demand will be significantly cut if the biodiesel promotion campaignworks, he noted.

"The ministry will design a framework and will coordinate with otherrelated state agencies, such as the Ministry of Agriculture and theAgricultural Cooperatives to promote the growing of oil-extractableplants, particularly palm oil to reduce the country’s oil imports,"Prommin said.

He added that growing the oil-crop will also boost farmers’ incomes.

He said the market price of fresh palm oil will be set at a minimum of2.50 baht per kilogram and the retail price of biodiesel will not behigher than diesel to woo motorists into purchasing a more environmentallyfriendly fuel.

Prommin added that the demand for diesel has increased by about 9-10percent over the past two years.

However, he stressed that the increase in the demand for diesel wasboosted by the expansion in the transport sector in line with the country’s economic growth and not was due to of the government’s oil price subsidyscheme.