The Malaysian government is in the midst of introducing the B15 biodiesel fuel to Malaysian consumers, where 19 licensed processing plants have been selected to produce this fuel from June 1, 2026, onwards.
This was announced by Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi, who is also in charge of the Rural and Regional Development Ministry (KKDW), where he said production will begin in stages, starting with B15 before progressing to B20, with the potential to reach B50 within the next two to three years.
“This phased approach is intended to ensure that crude palm oil (CPO) prices do not place pressure on biodiesel production costs,” Zahid told Bernama earlier today.
Palm-Based Biodiesel as New Catalyst for Rural Economy
The DPM also stated that the introduction of the B15 biodiesel could open up a new economical potential for Malaysians, with the minister believing that palm oil-based biodiesel could serve as a new catalyst for the rural economy, apart from supporting the national energy agenda.
“It presents an opportunity to link the strength of our commodities sector with the future of the rural economy.
“As such, FELCRA (Federal Land Consolidation and Rehabilitation Authority), KETENGAH (the Central Terengganu Development Authority), and KESEDAR (the South Kelantan Development Authority) must take this potential seriously,” Zahid added.
