Pertamina reduces biodiesel blend

Indonesia’s state-owned oil company PT Pertamina has reduced the biodiesel content in its Biosolar diesel fuel from 5% to 2.5% in April, due to the high costs of palm oil feedstock. According to Evita Legowo, secretary of the National Biodiesel Development Team, Pertamina took the step due to reduced margins caused by rising palm oil prices and lack of government incentives. Legowo said that as government subsidies for biodiesel are similar to those of fossil fuels, Pertamina has to cover the difference when biodiesel production costs exceed fossil fuel costs. (July 13, 2007)