Diesel Vehicles in Malaysia to use 10% Palm Oil Biodiesel

January 2019

Malaysia’s Prime Minister, Tun Dr. Mahathir Mohamad has launched the B10 Biodiesel Programme for all diesel vehicles in the transportation industry starting from 1 February 2019. Fuel mix for these vehicles will soon comprise 10% palm oil biodiesel and 90% fossil diesel. The use of 10% palm oil biodiesel in Malaysia for vehicles such as four-wheel-drive vehicles, lorries and buses will reduce the emission of greenhouse gases by 1.6 million tons of carbon dioxide equivalent per year.

The mandatory usage of B10 is foreseen to strengthen the domestic demand for palm oil, thus, stabilizing the supply of palm oil stocks.  This is expected to increase the revenue of some 650,000 palm oil smallholders in Malaysia.

Malaysia first initiated mandatory use of palm oil biodiesel for diesel vehicles in 2011 with the B5 Biodiesel Programme.  The programme entailed the use of 5% blending of palm oil biodiesel (which was later increased to 7 percent) with 95% fossil diesel for the transportation sector fuel mix in 2014. The government plans to introduce B20 Biodiesel to the fuel mix by 2020.

(Sources: The Star; The Edge Markets)


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