Amid rising fuel prices, former Deputy Teresa Kok has confirmed that B20 biodiesel has become a more cost-effective option compared to conventional diesel. She called on the Malaysian government to accelerate the necessary infrastructure updates to promote the use of this type of fuel, which would help ease the financial burden on citizens.
In a press statement, Kok explained that palm oil, considered one of Malaysia's strategic crops, should be better utilized as an alternative to conventional diesel. She noted that the prices of B20 biodiesel, which contains 20% palm oil, have already fallen below those of conventional diesel, enhancing its viability.
Event Details
Kok mentioned that market data as of March 27, 2026, indicates that palm oil biodiesel (PME) is currently trading below European Euro 5 diesel prices. Based on the crude palm oil price of 4,500 Malaysian Ringgit per ton, the cost of biodiesel is estimated at around 4.51 Malaysian Ringgit per liter, reinforcing the economic benefits of using biodiesel blends.
Kok expressed regret over the halt of the B20 program, pointing out that the government has not updated the necessary infrastructure since the program was officially launched in February 2020. She confirmed that some regions, such as Sarawak, still suffer from a lack of capacity to blend biodiesel, hindering its widespread use.
Background & Context
Malaysia is one of the largest producers of palm oil in the world, and the country has seen increasing efforts in recent years to promote the use of biodiesel as part of its sustainable energy strategy. However, insufficient investment in the infrastructure needed to distribute biodiesel has undermined these efforts. The B20 program was launched as part of an initiative to enhance biodiesel use, but progress in this area has been slow.
This issue is becoming increasingly important amid ongoing fluctuations in global oil markets, especially with the continuous conflicts in the Middle East affecting oil prices. Therefore, promoting the use of palm oil as biodiesel could be an effective local solution to address these challenges.
Impact & Consequences
If the Malaysian government can expedite infrastructure updates and promote biodiesel use, it could lead to a reduction in dependence on fossil fuels and lower costs for citizens. This shift could also contribute to Malaysia's environmental sustainability goals and reduce carbon emissions.
Moreover, enhancing the use of palm oil as biodiesel could support the local economy by increasing demand for palm oil, benefiting farmers and local producers. This could also help improve Malaysia's image as a source of biodiesel on the international stage.
Regional Significance
As Arab countries face significant energy challenges, Malaysia's experience in promoting biodiesel through palm oil could serve as a model. With increasing pressure on traditional energy resources, Arab nations may find themselves compelled to explore sustainable alternatives such as biodiesel.
Enhancing the use of biodiesel in the Arab region could contribute to achieving energy security and reducing reliance on oil imports, thereby enhancing economic stability in these countries.