Kuala Lumpur: The Malaysian Biodiesel Association has urged the government to speed up the nationwide rollout of higher biodiesel blends under its national programme, citing growing global uncertainties and the need to strengthen energy security, Bernama reported.
In a statement, the association pointed out that other ASEAN countries have already taken proactive steps to expand their biodiesel use. It noted that Indonesia has increased its blending from B40 to B50, while Thailand has moved from B5 to B7 and expanded the availability of B20 as an alternative fuel option.
The association said that in areas where blending infrastructure is already capable, higher biodiesel blends between B10 and B20 should be implemented immediately. It acknowledged that progress has been slowed by infrastructure limitations but stressed that the government should accelerate upgrades to enable blending levels of up to B30 across the country.
According to the association, the current global situation has made biodiesel expansion a strategic necessity rather than just a policy choice. It added that Malaysia, as a leading palm oil producer, should also promote biodiesel use beyond the national programme by removing the existing 10% sales tax on biodiesel.
The association said that a combination of mandatory blending and voluntary usage would help improve energy security, reduce greenhouse gas emissions, save foreign exchange, and protect the economy from fluctuations in global oil prices. It would also support the domestic palm oil sector and boost rural livelihoods.
Reiterating its support for higher blending mandates, the association said this approach should form a key part of both immediate and long-term national goals. It called for a clear and well-defined long-term biodiesel strategy to be included in the upcoming review of the National Biofuel Policy.
The association also noted that the planned implementation of a carbon tax mechanism in Malaysia could further encourage the adoption of higher biodiesel blends in both the transport and industrial sectors. It said clearer policy direction would provide much-needed certainty to industry stakeholders, investors, and consumers.
Describing the current crisis as both a challenge and an opportunity, the association said Malaysia has a chance to strengthen its commitment to sustainable, domestically driven energy solutions. It added that it is ready to work closely with the government and other stakeholders to advance the country’s biodiesel agenda.
