Malaysia mandates B5 by November

The Malaysian Minister for Plantation Industries and Commodities, Bernard Dompok, recently announced that all diesel fuel sold in Malaysia must contain 5% biodiesel (B5). Retail stations in Putra Jaya have already begun selling B5. Municipalities within the central region will launch B5 on a sequential basis, beginning with Malacca on July 1, then Negeri Sembilan, Kuala Lumpur and Selangor. All service stations in Malaysia must comply with this mandate by November 1, 2011. The government has fixed the supply price of biodiesel to the oil companies, which is linked to the monthly average RBD palm oil price. The price of B5 at the pump will be similar to regular diesel fuel, which is currently at 1.80 ringgit (US$0.59) per liter. Demand for biodiesel, when the mandate is fully implemented nationwide, is expected to reach 500,000 tons per year. (June 3,2011)