Malaysia to switch to B15 biodiesel blend from June 1
Malaysia will begin producing biodiesel with a 15% palm oil blend starting June 2026, as part of its efforts to reduce diesel prices and strengthen energy security. The announcement was made by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi during a speech to civil servants.
The move comes amid rising global oil prices and increasing efforts by Asian countries to reduce dependence on imported fossil fuels by expanding biofuel use.
Last month, the government confirmed it would raise its existing 10% biodiesel mandate (B10) to 15%, initially introducing a 12% blend as an intermediate step before full implementation.
From June 1, 19 production plants across Malaysia will begin producing B15 biodiesel. The transition will be gradual, with plans to increase the blend further to 20% and potentially reach up to 50% within the next two to three years.
Currently, Malaysia applies the B10 mandate for the transport sector, while a higher 20% blend is already in place in selected regions including Labuan, Langkawi, and Sarawak (excluding Bintulu).
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