Malaysia to subsidize green fuels

Malaysia is likely to offer the EnvoDiesel green fuel at subsidized rates to motorists when it becomes commercially available, judging from the current high palm oil prices of about RM2,500 (US$726.53) per ton. Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said the Automatic Pricing Mechanism for subsidized diesel will be applied on EnvoDiesel. The Malaysian government announced plans to start selling EnvoDiesel, a blend of 5% palm oil and 95% petroleum diesel locally by January 2008. Chin said the government is unlikely to mandate the use of EnvoDiesel over the next 12 months, as deliberations have to be held with the Finance, Transport and Domestic Trade and Consumer Affairs ministries. (July 6, 2007)