PUTRAJAYA: More than 70% of blending depots nationwide are equipped and ready to implement the B15 biodiesel mandate, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said the transition to a higher biodiesel blend was no longer just an alternative energy policy, but a critical national economic defence strategy in the face of the prolonged conflict in the Middle East.
Akmal Nasrullah said after the government's announcement to phase in the B15 mandate, inspections by the Plantation and Commodities Ministry confirmed that the majority of depots could execute the blending using existing facilities.
"Depot operators are currently framing operational adjustments to ensure efficiency and the security of petroleum product supplies to consumers," Akmal Nasrullah said in a press conference on Tuesday (April 21).
He also said recently conducted a joint working visit with the Plantation and Commodities Minister to the Klang Valley Distribution Terminal (KVDT) and a biodiesel processing plant in Pulau Indah, Klang, to assess the ecosystem's readiness.
"This sends an important message that energy issues can no longer be viewed solely from the perspective of current supply.
"It must be addressed within a national framework that connects energy security, the strength of the commodity sector, logistics efficiency, supply chain resilience, and the nation's economic endurance," he said.
While Brent crude prices dipped to US$117.85 per barrel in mid-April from a peak of US$132.46, Akmal Nasrullah warned that the supply crisis was far from over, with geopolitical disruptions potentially impacting global energy costs for up to 18 months.
“If this uncertainty continues, the impact on energy costs and global supply chains can take up to 18 months to stabilise, depending on geopolitical developments and the restoration of trade routes.
“This means that Malaysia is not exempt from global pressures coming from various angles,” he said.
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.
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 RM5.97per litre as of April 16.
