Cabinet Cuts Excise Tax on E20 and B20 Fuel for Three Months

Thailand’s Cabinet approved a temporary excise tax cut on two biofuel grades at its meeting on October 27, 2026: 5.60 baht per litre off E20 gasohol and 5.50 baht per litre off B20 biodiesel, running for three months. The Excise Department was authorised to put the reduction into effect.

Major fuel retailers OR and Bangchak passed the cut on to drivers from October 28, pricing both E20 and B20 at 33.50 baht per litre in Bangkok — a drop of 2.19 baht per litre for E20 and 3.69 baht per litre for B20.

The government says the aim is to ease costs for motorists and transport operators while supporting farmers who grow the sugar cane, cassava and oil palm used in biofuel production, and to reduce reliance on imported fuel. Finance Minister Ekniti Nitithanprapas acknowledged the cut adds to the state’s deficit, since lower excise revenue means more borrowing. The government plans to review the measure after three months and decide then whether to extend or adjust it — so drivers filling up with E20 or B20 should expect the lower price to be temporary unless it is renewed.