The West Asian crisis has severely affected the global fuel supply, including in Malaysia. The price of diesel is currently RM 5.12 per liter compared to RM 3.04 before the war began. The government today decided that B15 biodiesel must be produced by 19 plants starting June 1, 2026 in an effort to lower diesel prices in Malaysia.
This is just the first phase before the production of B20 biodiesel will be released in the next phase. The long-term plan is to produce B50 biodiesel within 2-3 years. Biodiesel is a mixture of diesel oil with palm oil. In B15 for example, it consists of 15% palm oil.
B15 and B20 can be used in your existing diesel vehicle without modification or minimal modification to the vehicle engine. The higher palm oil mixture makes biodiesel more viscous, acidic and has a higher water content than regular diesel. Rubber components and filters for example need to be modified while the engine needs to undergo a recalibration process.
Biodiesel in Malaysia will be produced using sediment and by-products from crude palm oil processing so as not to impact palm oil prices. A total of 19 biodiesel factories in Malaysia currently have a production capacity of 1.5 million liters per month.
