Malaysia may delay palm-biodiesel mandate

Malaysia may delay the compulsory blending of palm-based biodiesel to next year due to cost concerns, business daily The Star reported. The government hasn’t implemented a plan–previously scheduled for this year–to mandate the blending of 5% palm oil to make “B5” biodiesel as it hasn’t been able to find a willing party to absorb the extra costs, Plantation Industries and Commodities Minister Bernard Dompok said in the report. “We don’t know whether to pass (the cost of a blending subsidy on) to consumers, petroleum companies or the government,” the newspaper said, quoting Dompok. Malaysia is reviewing other options, including the possibility of reducing the mandatory blend level to 3%. (January 29, 2010)