AreaMalaysia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/10/2014

Policy CategoryRenewable energy

Policy InstrumentRenewable energy policy

DescriptionMoved nationwide implementation of 7 percent mandatory fuel blending rate (palm oil-based biodiesel) to December 1st.

NotesTo stimulate domestic consumption, the government decided to bring forward to December 1st the implementation of B7, i.e. nationwide mandatory blending of diesel with 7% of palm oil-based biodiesel. Only two months ago, the government had opted to delay the introduction of 5%-blends (B5) to December on technical grounds, leaving the transition to B7 for the first quarter of 2015 (see MPPU Sep.’14). Reportedly, nation-wide implementation of B7 will translate into an annual demand of 575 000 tonnes of biodiesel, production of which would require roughly 650 000 tonnes of CPO.