Malaysia will begin producing B15 biodiesel across 19 licensed plants from June 1, 2026, in a government-led move intended to bring down diesel prices across the country.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who also heads the Rural and Regional Development Ministry, announced the development at the ministry’s monthly assembly on Monday. He said production would be introduced in stages, starting with B15 — a blend containing 15 per cent palm oil-based biodiesel — before advancing to B20, with the longer-term aim of reaching B50 within the next two to three years, The Edge Malaysia reported.
Ahmad Zahid said the phased rollout was designed to prevent crude palm oil (CPO) price fluctuations from placing undue pressure on biodiesel production costs.
Beyond its role in the national energy agenda, the Deputy Prime Minister said palm oil-based biodiesel held significant potential as a driver of rural economic development. He described it as an opportunity to connect the strength of Malaysia’s commodities sector with the future of rural livelihoods.Ahmad Zahid specifically called on the Federal Land Consolidation and Rehabilitation Authority (Felcra), the Central Terengganu Development Authority (Ketengah), and the South Kelantan Development Authority (Kesedar) to actively pursue the opportunities presented by the programme, urging these agencies to treat the potential seriously.
