The government is pushing ahead with biodiesel as a key solution to cushion rising diesel costs, with Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi describing the transition as an “obvious option” amid volatile global oil prices.
He said the proposal has been tabled to the National Economic Action Council (MTEN), with a focus on scaling up biodiesel production through collaboration between agencies such as the Federal Land Development Authority, Federal Land Consolidation and Rehabilitation Authority and plantation industry players.
Zahid said Malaysia currently has 19 biofuel plants producing blends ranging from B15 to B50, adding that efforts will tap into sludge and by-products from crude palm oil (CPO) processing, which can contribute up to 35% of production input.
He noted that the initiative, which also includes the production of Jet A1 fuel, has already begun and received in-principle approval from MTEN.
“We will coordinate with all relevant parties to create synergies across these plants so production costs can be lowered,” he told reporters after officiating the opening of RissMart Grocer at Urban Eats@Kwasa Damansara today.
Beyond cost savings, the move is also aimed at reducing waste and easing raw material pressures within the industry.
Initial output is estimated at over 1.5 million litres per month and is expected to rise significantly once large-scale production kicks in.
Zahid said pilot tests have already been carried out, with Petronas also conducting trials, reinforcing confidence in the fuel’s usability.
“In the long run, biodiesel will help stabilise and bring down diesel prices in the country,”he said.
