The Thai government has cut excise duties by three percentage points on flexible fuel vehicles (FFVs) compatible with E85 gasohol, in an effort to reduce the country’s dependence on fossil fuel imports.

The excise rate will fall from 25% to 22% on cars with engines up to 2000cc; from 30% to 27% on cars with engine between 2000-2500cc; and from 35% to 32% on cars with 2500-3000cc engines.

So far only Mitsubishi Motors makes mass-market FFVs in Thailand, with Volvo Thailand also selling small volumes of FFV models. Import duties cuts on FFV vehicles will also be extended for another year, to 60% from 80%, to help encourage local consumption of gasohol at the expense of traditional petrol.

Tony Pugliese