Seputeh Member of Parliament and former Primary Industries Minister, YB Teresa Kok, today called on the Malaysian government to urgently assist the petroleum industry in scaling up B10 and B20 biodiesel blending. This strategic move is essential to counter the current fuel price hike, as palm-based biodiesel has become a more cost-effective alternative to pure fossil diesel.
As the government struggles to find solutions to the fuel crisis, I urge the Ministry of Finance (MOF) and the Ministry of Plantation and Commodities to immediately push for the full implementation of the B20 biodiesel mandate to save costs for both the government and the industrial sector.
Price Analysis: Biodiesel as a Shield Against High Fuel Costs
A price comparison based on market data from 27 March 2026 reveals that palm biodiesel (PME) is currently trading lower than international Euro 5 diesel. With Crude Palm Oil (CPO) at RM4,500 per tonne and Euro 5 diesel at USD 220 per barrel, the cost-benefit of blending is clear:
| Fuel Type | Price (RM/Litre) | Comparison to Pure Diesel |
| B0 (Pure Diesel) | RM5.53 | – |
| B7 Biodiesel | RM5.46 | Save 7 sen/litre |
| B10 Biodiesel | RM5.43 | Save 10 sen/litre |
| B20 Biodiesel | RM5.33 | Save 20 sen/litre |
Note: CPO at RM4,500/tonne is equivalent to approximately RM4.51/litre of biodiesel.
Under this pricing structure, B20 biodiesel is 20 sen cheaper per litre than pure diesel. Shifting to higher blends is no longer just an environmental goal; it is an urgent economic necessity to reduce the national subsidy bill and lower operating costs for logistics and businesses.
Addressing Infrastructure Neglect
It is deeply regrettable that the government has allowed the B20 programme to stall. Since its official launch in February 2020 by myself and then-DPM Dato’ Seri Dr. Wan Azizah Wan Ismail, infrastructure development has been severely neglected. We must adopt a forward-looking approach and prepare contingencies in advance.
Currently, while B20 has been rolled out in Sarawak, Bintulu remains excluded due to a lack of blending capacity. In Sabah, some blending depots in Sandakan, Tawau and Kota Kinabalu are still awaiting essential upgrades. In Peninsular Malaysia, the rollout is even more dismal, with Langkawi being the only location offering B20 to consumers.
Call to Action
With the ongoing conflict in the Middle East threatening to keep global oil prices volatile for years to come, Malaysia can no longer afford to “brush aside” its own domestic energy solutions.
I urge the government to:
- Direct the MOF to immediately approve and fast-track the upgrading of 35 petroleum depots nationwide.
- Provide Incentives to distribution B10 and B20 blends at stations and to industrial users.
- Complete Stalled Projects in Sarawak, Sabah and the Peninsula to ensure nationwide energy security.
We must treat our palm oil as a strategic asset. By failing to upgrade our depots, the government is forcing the rakyat to pay more at the pump while leaving our “golden crop” underutilised.