Indonesia’s 50% biodiesel blending rate takes effect
In Indonesia, Reuters reported that Indonesia’s new 50% biodiesel blending mandate took effect on July 1, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, even as stakeholders await a biodiesel allocation from the government.
In an effort to achieve energy independence, Indonesia increased the mandated blending rate to 50% from 40%, effective July 1. The program, however, faces feasibility challenges in the wake of retreating crude oil prices and high prices of palm oil, which typically trades at a premium to diesel, according to the report.
“Implementation (of B50) is proceeding in accordance with the applicable regulations,” energy ministry official Noor Arifin Muhammad said..
While the government has provided a three-month transition period to allow fuel retailers to clear out B40 stocks according to a decree issued in June, producers must now deliver higher-quality palm-based diesel for retailers to blend into biodiesel, the report added.
Category: Policy
