Malaysia to keep 5% biodiesel blend

Malaysia has decided to stick to an original plan to mandate a 5% palm oil-based methyl ester blend, but its implementation could be pushed back further to next year, a government official said. The Malaysian government had drawn criticism from the biodiesel industry after a move earlier to dilute the proposed blend to 3%, in a bid to contain government subsidies needed for the program. Commodities Minister Bernard Dompok has said that the government would need to spend 250 million ringgit (US$73.64 million) a year to subsidize a 5% blend. The original plan was to start using biodiesel blends in government vehicles, followed by the industrial and transport sectors, and to eventually cover all diesel fuel sold in the country by February 2010. (February 23, 2010)