Panel Formed To Stabilise Cpo Prices Before B20 Fuel Rollout


The government says palm oil is a viable option to reducing the country’s dependency on fossil fuels.GEORGE TOWN: The federal government has formed a special joint committee to ensure that crude palm oil (CPO) prices will remain stable when Malaysia introduces B20 biodiesel fuel next year
The joint committee is headed by the primary industries ministry and consists of the finance and international trade and industry ministries and the Prime Minister’s Department
B20 biodiesel fuel is a blend of 20% palm methyl ester and 80% petroleum diesel
Primary Industries Minister Teresa Kok said Malaysia was looking at establishing a biodiesel stabilisation fund to help contain biofuel prices as well as make the fuel more attractive to consumers
“We will come up with a mechanism to ensure that when the CPO prices are high, we are able to stabilise the biofuel prices in the market,” she said after officiating a seminar on biodiesel implementation in the industrial sector here today
This was due to public concern that higher biofuel usage would cause palm oil prices to go up
However, Kok said that before implementing any mechanism, her ministry would consult all the stakeholders, including petroleum companies and car manufacturers, to ensure the plan will proceed smoothly after the implementation of B20 biodiesel
“The implementation will make available B20 biodiesel oil at all petrol stations nationwide,” she said
Kok also said palm oil was a viable option to reducing the country’s dependency on fossil fuels as it had tremendous potential as a renewable energy (RE) source
“Indonesia, the world’s largest producer and exporter of palm oil, has been using B20 biodiesel for many years and there is no negative feedback from its automotive industry
“In fact, they are currently testing B100 in Sumatra and planning to move on to B30 soon,” she said
In December last year, Malaysia introduced B10 biodiesel to the domestic transportation market, increasing its blend from 7% to 10%. - FMT

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