The government has set up a committee – comprising four ministries – to come up with a mechanism to control the price of biodiesel containing 20% bio-content (B20) palm oil to boost domestic usage, says Primary Industries Minister Teresa Kok.
The committee will comprise of her ministry, Finance, International Trade and Industry ministries and the Prime Minister’s Department, she said, adding that the matter was discussed at the Cabinet meeting on Wednesday.
Kok said there is a concern the price of palm biodiesel will increase if it is widely used.
“Therefore, we have to come up with a set of regulations after discussions with the related agencies,” she said after speaking at a seminar on Biodiesel (B7) implementation in the Industry Sector at a hotel here yesterday.
She also said the reduction in palm oil stock showed positive signs for what is in store for the industry.
“The stock was at 2.73 million tonnes in April and it was reduced to 2.45 million tonnes last month, a 10% reduction.
“We believe the price of palm oil will strengthen before the end of the year,” she said.
Kok also said Indonesia was using a B20 blend of biodiesel for transport and industrial sectors without any reports of engine failure.
“Malaysia, as the second largest producer of palm oil should expand its use as renewable energy like other palm oil producing countries.
“We are targeting for all petrol stations to supply B20 biodiesel,” she said.
Kok did not specify a specific time frame on when B20 biodiesel will be available at local petrol stations.
Also present at the seminar were Malaysian Palm Oil Board deputy director-general Dr Ahmad Parveez Ghulam Kadir, Penang Federation of Malaysian Manufacturers (FMM) chairman Datuk Dr Ooi Eng Hock and FMM energy committee chairman Steven Aroki.