THE government has decided that B15 biodiesel will be produced by 19 licensed plants from June 1 this year, in a move aimed at lowering diesel prices nationwide.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also in charge of the Rural and Regional Development Ministry (KKDW), said production would be introduced in stages, beginning 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,” he said at the ministry’s monthly assembly today, as reported by Bernama.
Ahmad Zahid said palm oil-based biodiesel could serve as a new catalyst for the rural economy, beyond 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 (the Federal Land Consolidation and Rehabilitation Authority), KETENGAH (the Central Terengganu Development Authority), and KESEDAR (the South Kelantan Development Authority) must take this potential seriously,” he added. – May 4, 2026
