Kuala lumpur: The government will examine the feasibility of implementing B50 biodiesel usage, prompted by the need for a comprehensive upgrade of existing blending depots, which is expected to involve significant costs, according to the Ministry of Plantation and Commodities (KPK).

According to BERNAMA News Agency, KPK revealed that in assessing the country's capability to support the expansion of biodiesel usage, the 2025 palm oil supply balance data served as a reference. The data indicates that Malaysia has a robust supply base, with total palm oil supply projected to reach 22.76 million tonnes. This comprises 1.71 million tonnes of preliminary stock, 20.28 million tonnes of production, and 0.77 million tonnes of imports.

Of the total supply, 15.27 million tonnes are allocated to meet global export demand, while 4.43 million tonnes are designated for domestic needs across various economic sectors, including the biodiesel sector. The ministry, in a written reply published on the Parliament website, emphasized that based on the current supply position, expanding biodiesel implementation up to B30 is not expected to affect the country's palm oil export supply. The amount of palm oil required to support B30 implementation is estimated at 1.60 million tonnes per year, representing approximately 7.0% of the total supply.

This percentage is considered relatively small compared to the total available supply, indicating that Malaysia can meet both export market demand and domestic consumption. The ministry stated that the expansion of biodiesel usage can be carried out without affecting the country's ability to fulfil palm oil export demand.

Currently, the government's long-term strategy is to increase biodiesel usage up to B30, as outlined in the National Agricommodity Policy, and supported by other initiatives like the National Transport Policy and the National Energy Transition Roadmap. These plans aim to expand the National Biodiesel Programme in phases across Malaysia to achieve B30 for the land transportation sector by 2030.