Malaysia to increase B7 biodiesel mandate

From November, Malaysia will lift its biodiesel mandate from 5% to 7%.

The world's second largest palm grower hopes to lower stocks and raise prices that have dropped more than 20% this year, while increasing the domestic consumption of palm-based biodiesel.

The government hopes that the higher mandate for the subsidised sector will help reduce the country’s reliance on diesel.

‘Implementation of B7 programme will consume 575,000 tonnes of biodiesel,’ says Douglas Uggah Embas, Malaysian plantation industries and commodities minister. ‘This will contribute towards a saving of 667.6 million litres of diesel a year.’

The B7 biodiesel blend will be implemented in Peninsular Malaysia from November onwards and from December for Sarawak, Sabah and Labuan.