Malaysia plans to implement biofuel mandate by June

Malaysia plans to push through with its long-awaited biofuel mandate from June 1, starting with four central Malaysia states — Melaka, the Federal Territories, Negeri Sembilan and Selangor, according to media reports. Malaysia plans to subsidize palm oil-based biodiesel by keeping the price the same as petroleum diesel, according to reports. Currently, the price for petroleum diesel is 1.80 ringgit (US$.60) per liter. This subsidy could take 100,000 tons of palm oil from the market by the end of 2011, it was reported. Palm oil production in Malaysia is projected to be 17.6 million tons this year. According to an unnamed source, the Malaysian government will pay up to 6 Malaysian cents per liter for a 5% blend of palm oil and 95% petroleum diesel. (March 8, 2011)