Govt can save RM10.7m in subsidies with B10 biodiesel

KUALA LUMPUR: The use of B10 biodiesel in the transportation sector can help the government save RM10.7 million in subsidies annually, if it is successfully implemented, said Primary Industries Minister Teresa Kok Suh Sim.

She said the use of B10 biodiesel would also enable the government to save RM1.6 billion in diesel import costs annually.

“This is because the biodiesel price is currently at RM2.28 per litre, whereas diesel is currently sold at RM2.31 per litre,” she when responding to a question from Chan Foong Hin (DAP-Kota Kinabalu) in the Dewan Rakyat here today. 

 Kok said the industrial diesel price was currently priced between RM2.60 and RM2.80 per litre compared with the biodiesel price of RM2.28 per litre.

She said the use of B7 biodiesel in the industrial sector would save fuel costs for industrial use amounting to RM6.5 million annually if the prices stayed unchanged, hence, the government was committed to increase the use of biodiesel domestically and internationally.

The national biodiesel programme was introduced in 2011 with the B5 biodiesel with a blend of five per cent palm oil biodiesel and 95 per cent petroleum diesel.

Currently, petrol stations nationwide are offering B7 biodiesel with a blend of seven per cent palm oil biodiesel and 93 per cent petroleum diesel under the transportation sector's B7 programme, while the industry sector continues to use regular diesel.  

The B7 biodiesel uses 350,000 tonnes of palm oil per year.

“The Primary Industries Ministry will present a Cabinet Memorandum on the proposed B10 blend for the transportation sector and B7 for the industrial sector nationwide.  

“Both programmes are expected to use 760,000 tonnes of palm oil annually, thus stabilising palm oil prices in the market,” she said, adding that she would be going to Indonesia on Nov 8 to discuss an action plan to counter the anti-palm oil campaign. - Bernama


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