Malaysia Regulates New Petrol Quality RON95

Malaysia has requested its National Oil Company, Petronas to supply the country with new petrol quality of RON95 instead of the current available petrol quality RON92 and RON97. The country's administration move will eliminate RON92 to better position with global petrol quality.

The move has been getting different response from the Malaysian people. The move will help Malaysia as a whole to save subsidy by supplying a lower quality petrol RON95 at a price expected to be as close to the current RON97. However, the government will also increase the price of RON97 which expected by analysts to be the country's premium petrol. Whilst many of today's car are designed to run by RON95; some of outdated models are incompatible.

The move is also likely to incur significant cost for PETRONAS under its marketing arm, PETRONAS Dagangan Bhd as RON95 petrol is formulated with a detergent to prevent the build-up of deposits that degrade the engine's performance. The company has said that the change involves the whole supply chain from refineries to delivery of the fuel to the consumers which comes September 9 is likely to be followed by other oil companies like Shell, BHP, Caltex and Exxon Mobil in the country as set by the Malaysian government.

China Postponing Stockpiling Oil & Energy

China has announced that it is suspending the energy and oil stockpiling program due to unavailability of new storage facilities. China has been aggressively looking at its energy security for growth and stability protection especially after the global oil price hike in 2008.

China's oil stockpiling program's first phase is looking at 100 million barrels equivalent to China's 30 days of oil import for emergency usage.

Beijing administration is interested to have oil reserve in case of a crisis scenario, in particular to situations in Middlea East & Africa where most of world oil production is located now. China's plan has been regarded by analysist as getting the help from heaven as the global financial and economic crisis has put a pressure on and subsequently much lower global oil prices enabling the cash-rich Chinese to pursue the mega-plans of oil reserve.

The last phase of the strategic plan will enable China to have 100 days of total oil import enabling independance on China's soil without any foreign interference on energy usage which is the same as U.S Strategic Petroleum Reserve.

United States Asked China to Join International Energy Agency

It seems that the oil crisis is getting at the nerve of many Americans. The U.S. has asked that China, the second major consumption of energy after United States to join the International Energy Agency, which was set up after the oil shocks of the 1970s to help developed countries manage emergency oil supplies.

The International Energy Agency (IEA) is currently made up of the world's richest nations and China participation is hope to bring relief in the current global oil price soaring.

Chinese officials confirmed the news and was showing interests to join IEA but concerned since the group is part of the Organization for Economic Cooperation and Development, which includes most of the world's richest countries which vow to an open market economy and democratic pluralism, a concern to Communist China.

Brazil Using Standard Biodegradable Labels

Another environment steps taken by Brazil which is pushing for labelling of biodegradable plastic packaging according to world standards to ensure such characteristics touted to consumers in fact exist.

In the fast lane of becoming green and environmentally friendly, many producers are using labels to buy the customer perception towards green environment even when the products do not offer such.

Brazil’s official industrial standards board ABNT and the National Plastic Institute (INP) will be working with a 70-member multi-disciplinary committee for the guidelines for the label.

Thailand Selling E20 Gasohol

Thailand has started selling its E20 Gasohol, a 20% ethanol - gasoling blending, replacing MTBE. E20 is cheaper than regular gasoline in Thailand and large gasoline blenders like Shell and PTT are both offering E20 grades at some of their pump stations. E20 Gasohol (Gasoline-Ethanol) is cheaper than regular methyl tertiary butyl ether (MTBE) blended gasoline due to Thailand's government subsidy.

Many newer Japanese and European cars should be able to tolerate E20 which is a 20% blending of ethanol as opposed to earlier version of E10, using 10% blending of ethanol. Thailand has a strong policy towards biofuels and widespread use of ethanol blended gasoline has been seen in the starting with B2, a 2% biodiesel blend in petroleum diesel.

B2 Biodiesel Starts Selling in Thailand

B2 Biodiesel, a 2% biodiesel blending has started selling in Thailand in February upon Thailand's government approval. The biodiesel includes government subsidy in which it will be sold at cheaper price than regular diesel at 0.80 Baht/ litre cheaper.

Bangkok's major diesel sellers including Shell, PTT and Bangchak will be selling B2, making it available nationwide. The market price for B2 will be tied to feedstock palm oil price.

B2 is seen as major advancement in Thailand's policy towards green environment as the country has already used E10, a 10% blend of ethanol after the ban of MTBE for gasoline blending which includes government subsidy. The ethanol mostly comes from tapioca and sugarcane in Thailand. The government policy has helped bringing up biodiesel companies in Thailand, some includes Thai Oleochemicals Co, with biodiesel plant capacity includes a 200 ktpa of palm methyl ester (PME), or palm biodiesel.