Kuala lumpur: The government's decision to raise the biodiesel blend rate to B15 is seen as a strategic move amidst the global fuel price uncertainty, aiming to alleviate cost pressures, bolster supply, and support Malaysia's sustainability agenda. This initiative, driven by the crisis in West Asia, is not merely reactive but reflects a pragmatic approach by leveraging Malaysia's status as the world's second-largest palm oil producer to gradually reduce reliance on diesel imports.
According to BERNAMA News Agency, the B15 blend, which consists of 15 percent palm oil-based biodiesel mixed with 85 percent petroleum diesel, will be implemented in stages starting with B12, as agreed upon by the National Economic Action Council (MTEN). This shift is not expected to incur additional costs. Experts suggest that while the immediate impact on prices may not be significant, the approach provides relief for diesel users, particularly in the transportation and industrial sectors.
Associate Professor Dr. Abdul Aziz from Universiti Putra Malaysia's Department of Mechanical and Manufacturing Engineering stated that increasing the biodiesel blend could reduce imported diesel dependency by approximately five percent. "This reduction may seem small, but if oil prices remain stable, combined with the increase in biodiesel blend, I believe diesel prices can be reduced a bit. At least there is some relief for pickup truck users, the logistics sector, and the industrial sector," he said.
Economy Minister Akmal Nasrullah Mohd Nasir announced at a recent global energy crisis briefing that the government would increase the biodiesel blend rate from B10 to B15, starting with B12, without incurring additional costs due to the West Asia conflict. The National Economic Action Council (NEAC) also agreed that biodiesel represents a practical and readily implementable alternative biofuel source.
In terms of national energy security, UPM Biorefinery Complex head Prof Dr. Hidayah Ariffin noted that increasing the biodiesel blend can extend the storage period of domestic diesel stocks, ensuring supply stability during the expected 18-month-long crisis. She emphasized that concerns regarding vehicle engine impacts are minimal since blends like B10 and B15 can be used directly without modifications. Indonesia's experience with the B40 policy, now considering B50, demonstrates that widespread biodiesel use does not compromise vehicle performance.
Dr. Chong Siew Huay, a senior lecturer at Universiti Teknologi MARA (UiTM), remarked that while biodiesel is not a long-term solution, it serves as a cost-effective 'energy bridge' that does not require new infrastructure development, reducing dependence on conventional diesel. She highlighted the importance of a phased approach to avoid market shocks amid volatile palm oil and global oil prices, noting biodiesel's limitations in terms of sustainability and commodity dependence. Biodiesel is considered a transitional step toward a cleaner energy system, supporting the country's energy transition targets towards sustainable sources.