The Thai government raised the reference price of biodiesel by Baht 1.22/liter from Friday to Baht 29.05/liter Monday, the fifth price change in a month, due to weaker local currency rates and higher methanol prices.
A spokeswoman for the Energy Planning and Policy Office said the government sets biodiesel prices on a weekly basis.
"It depends on the cost of raw material," she said. "This week's price has gone up because methanol has become more expensive, and the exchange rate between the baht and dollar has increased."
Methanol is one of the components used to make biodiesel.
The spokeswoman said the average weekly price of methanol rose to Baht 15.5/kg from Baht 15/kg last week.
The Thai baht fell below 32 to the dollar on August 22, a three-year low. The Thai government valued the currency at Baht 32.2155 to the dollar Monday, up Baht 0.0977 from Friday.
The Thai government's average weekly crude palm oil price has hovered between Baht 24.35/kg and Baht 25/kg for the past three months, the spokeswoman said.
The government cut its ethanol reference price for September by Baht 2.64/liter from Friday to Baht 26.85/liter Monday. EPPO, which falls under Thailand's energy ministry, typically adjusts the ethanol price once a month.
"The price is appropriate for Thailand right now," the spokeswoman said. "The ethanol price was higher last month because the production of ethanol from cassava was less."
The ethanol reference price for September was calculated from July 15 to August 15.
