BANGKOK: Thailand will tighten controls on crude palm oil exports from Tuesday (April 7) in a bid to maintain a balance between domestic consumption and rising energy demand.
According to the Royal Gazette, the measure, effective for one year, restricts the export of crude palm oil unless prior approval is granted by the authorities.
The move comes amid rising demand for biodiesel blending linked to the ongoing conflict in the Middle East.
The Ministry of Commerce said the key reason for the measure stems from its assessment that the conflict has driven global petroleum prices higher.
"This trend has prompted Thailand’s energy sector to prepare for an increase in the biodiesel blending ratio in diesel fuel.
"At the same time, demand for Thai crude palm oil exports has risen, leading to a corresponding increase in domestic demand,” the ministry said in a statement on Monday.
It added that the Central Committee on Prices of Goods and Services (CCPS) deemed it necessary to introduce measures to manage crude palm oil supply in order to maintain balance across all sectors, including household consumption, industry and energy, and to ensure sufficient domestic supply throughout the year.
Thailand is the world’s third-largest producer of palm oil, and the Kingdom is projected to produce approximately 3.94 million tonnes of crude palm oil in 2026. - Bernama
