PUTRAJAYA: Malaysia is set to increase its biodiesel blend mandate from B10 to B15, starting with an initial rollout of B12, to strengthen the nation’s energy security.
Economy Minister Akmal Nasrullah Mohd Nasir said the upgrade will not incur any additional expenses because it will utilise Malaysia’s existing biodiesel blending infrastructure.
Biodiesel blending mandates are policies requiring a specific percentage of renewable fuel - typically palm oil-based methyl ester (PME) — to be mixed into fossil diesel.
The numbers in the mandates represent the percentage of palm oil in the fuel mix.
“The ongoing B10 implementation proves that the foundation for this already exists. Therefore, the government has agreed to increase the biodiesel blend rate to B15, beginning with B12,” he said in a press briefing on Tuesday (April 14).
Akmal Nasrullah’s remarks came following the National Economic Action Council (MTEN) meeting on Tuesday (April 14).
He said the increased use of biodiesel is a strategic move to prolong Malaysia’s domestic disel supply.
Meanwhile, Akmal Nasrullah said the government has laid out a biofuel mitigation plan that includes the phased upgrading of depots to accommodate B20 and B30 blends under the upcoming 13th Malaysia Plan (13MP).
He added that preparations are also underway to introduce a B30 mandate specifically for the commercial and public transport sectors.
To ensure a smooth transition, Akmal Nasrullah said Putrajaya will hold engagement sessions with the Oil Industry Technical Committee (OITC).
“The government will continue to monitor global developments, ensure our energy supply remains sufficient, and accelerate reforms towards a more resilient energy system as a national strategic necessity,” he added.
Akmal Nasrullah also said Malaysia has massive untapped potential in this sector, pointing out that last year, the country produced 975,207 metric tonnes of biodiesel, despite having a total production capacity of 2.36 million metric tonnes.
"This shows that the industrial foundation, supply chains, and blending capabilities are already in place and only need to be systematically strengthened to provide greater benefits to the country," he said.
He added that a recent working visit to the Klang Valley Distribution Terminal (KVDT) — a joint venture between Petronas Dagangan Bhd and Shell Malaysia Trading Sdn Bhd — confirmed that the infrastructure, handling, and blending facilities are fully prepared for the transition.
Rising diesel prices in Malaysia, driven by the Middle East conflict, are accelerating the push for higher biodiesel mandates to cut costs.
Diesel prices in Peninsular Malaysia surged from RM2.99 per litre in February to a high of RM6.72 per litre as of April 9.
