Malaysia is planning to raise its biodiesel blending mandate from B10 to B15 in a phased manner, starting with the introduction of B12, as part of efforts to strengthen energy security.
Economy Minister Akmal Nasrullah Mohd Nasir said the move will rely on existing blending infrastructure and is not expected to add extra costs. He noted that increasing biodiesel use would help extend the country’s domestic diesel supply, The Star reported.
Biodiesel mandates require a fixed share of renewable fuel, typically derived from palm oil, to be mixed with conventional diesel. The minister said the current B10 rollout has already laid the groundwork for higher blending levels.
The government is also preparing for further expansion under the upcoming national development plan, including upgrades to support B20 and B30 blends. A separate B30 mandate is being planned for commercial and public transport sectors.
Malaysia had earlier launched its B20 biodiesel programme in February 2020, and officials say they will continue to monitor global trends while ensuring stable fuel supply.
The minister highlighted that the country has significant untapped potential in the sector. Malaysia produced about 975,207 metric tonnes of biodiesel despite having a production capacity of 2.36 million tonnes, indicating room for growth.
He added that the industry’s supply chains and blending systems are already in place and can be further strengthened to deliver greater benefits.
It is still unclear whether the premium B7 diesel blend will also see an increase in biofuel content. As of April 9, the Euro 5 B10 diesel was priced at RM6.72 per litre, while the B7 blend was slightly higher at RM6.92 per litre.
