Malaysia rules out raising palm oil biodiesel blend to 20%

Malaysia will not increase its palm oil biodiesel blend to 20 per cent from the current 10 per cent due to the high infrastructure costs, which require 643 million ringgit ($146.2 million), Plantation and Commodities Minister Johari Abdul Ghani stated on Monday.

He noted that while the higher blend is already in use in Labuan, Langkawi, and most of Sarawak, industry players want government funding, which authorities are unwilling to provide. Meanwhile, Indonesia’s adoption of a 40 per cent biodiesel mandate has tightened global supply, driving up palm oil prices.

Attribution: Reuters

Subediting: M. S. Salama