The government has decided that B15 biodiesel will be produced by 19 licensed factories starting June 1 this year in an effort to lower diesel prices nationwide.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who also holds the portfolio of the Rural and Regional Development Ministry, said production would be introduced in stages, starting with B15 before moving to B20 and potentially reaching B50 in the next two to three years.
“This staged approach is aimed at ensuring that the price of crude palm oil (CPO) does not burden the cost of biodiesel production,” he said at the ministry’s monthly gathering here on Monday.
Zahid said palm oil-based biodiesel could be a new catalyst for the rural economy as well as supporting the country’s energy agenda.
“This opens up an opportunity to connect the strength of our commodity sector with the future of the rural economy.
“In this regard, Felcra (Federal Land Development Authority), Ketengah (Central Terengganu Development Authority), and Kesedar (Southern Kelantan Development Authority) need to take a serious look at this potential,” he added.
