PUTRAJAYA, April 15 — The Malaysian government has announced an increase in the biodiesel blend ratio as part of urgent measures to reinforce the country’s diesel supply, according to a report by Life News Agency.
Economy Minister Akmal Nasrullah Mohd Nasir said the decision was made following a meeting of the National Economic Action Council (MTEN), highlighting biodiesel as a key short-term solution to address supply concerns.
“Biodiesel is now one of the main alternatives to further extend the availability of the country’s diesel supply immediately,” he shared on social media.
The government has agreed to increase the biodiesel blend rate from the current B10 (10%) to B15 (15%), starting with an initial move to B12.
The policy shift leverages Malaysia’s established palm oil methyl ester (POME) biodiesel industry and existing infrastructure, enabling rapid implementation without requiring significant new investments.
Akmal Nasrullah Mohd Nasir also revealed that he had personally inspected the readiness of biodiesel blending facilities, expressing confidence in the sector’s capacity.
“The industrial base, supply chain, and blending capacity are ready for biodiesel production,” he said.
The move comes amid ongoing global energy market volatility driven by geopolitical tensions that continue to disrupt fuel supply chains. By increasing reliance on domestically produced biodiesel, the government aims to reduce dependence on imported diesel while enhancing national energy security.
The initiative builds on Malaysia’s existing biodiesel programme and aligns with longer-term strategies to gradually increase blend rates, supporting both the palm oil industry and broader sustainability goals.
The minister is expected to provide further details on the policy and its implications in a follow-up briefing.
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