Potential B15-B30 push to reshape Malaysia’s palm oil demand
In Malaysia, New Straits Times reported that a potential shift towards higher biodiesel blends of B15-B30 could significantly reshape Malaysia’s palm oil demand dynamics, with consumption projected to rise between 380,000 tons and 1.5 million tons.
This will be equivalent to 1.8-7.4% of national crude palm oil supply, according to CIMB Securities Sdn Bhd analyst Ivy Ng Lee Fang.
The step-up in blending mandates would mark a material inflection point for the industry, far exceeding the incremental gains seen under current policies, Ng said.
Malaysia plans to lift its mandate from B10 to B15, beginning with an initial implementation of B12, as part of efforts to enhance energy security and reduce reliance on fossil fuels.
Economy Minister Akmal Nasrullah Mohd Nasir said the transition will not incur additional costs, as it will leverage existing blending infrastructure under the current B10 program.
The report noted that the existing B10 program consumes about 750,000 tons of palm oil annually at full implementation.
The planned rollout of B12 is expected to lift usage by a further 150,000 tons to 900,000 tons, or roughly 0.7% of Malaysia’s projected 2025 output.
Category: Food & Agriculture
