Malaysian government to push back implementation of B10 biodiesel initiative

The Malaysian government will defer implementation of its B10 mandate to a later date, Minister of Plantation Industries and Commodities, Mah Siew Keong, said.

The government was due to introduce a higher biodiesel mandate for the transportation and industrial sector starting from 1 December, 2016. However, it is now unclear when Malaysia will now implement the B10 initiative.

Keong said the move was taken after a thorough study done by taking into account the difference between the price of crude palm oil (CPO) and diesel on the market, according to Utusan.com.

The B10 programme, a mixture of 10% palm biodiesel with 90% petroleum diesel, was due to be rolled out in phases beginning with the state of Johor, according to media reports.

The B7 programme for the industrial sector was due to start nationwide on the same date, according to an e-mail seen by Reuters.

"Although significant efforts have been made to the implementation, the government remains committed to ensuring that no cost burden to the people at this time," he told reporters.

Petrol stations selling Euro 5 grade diesel are exempted from the B10 mandate but will be required to retail the B7 blend.