KUALA LUMPUR, — The Malaysian government has agreed to increase the national biodiesel blend mandate from the current B10 to B15, with an initial rollout of B12, as part of efforts to strengthen energy security and reduce reliance on imported fossil fuels amid global energy uncertainties.
Economy Minister Akmal Nasrullah Mohd Nasir announced the decision following a meeting of the National Energy Transition Council. He said the move aims to prolong domestic diesel supply and accelerate the transition towards a more resilient energy system.
“The ongoing B10 implementation proves that the foundation for this already exists. Therefore, the government has agreed to increase the biodiesel blend rate to B15, beginning with B12,” Akmal said.
He added that the upgrade will not incur any additional costs as it will fully utilise Malaysia’s existing biodiesel blending infrastructure and supply chains.
Malaysia currently mandates a 10% palm methyl ester (PME) blend in diesel (B10). The phased increase will start with B12 before progressing to B15. The government has also outlined plans under the 13th Malaysia Plan to upgrade depots to support higher blends, including B20 and B30, with a targeted B30 mandate specifically for the commercial and public transport sectors.
Akmal noted that Malaysia’s biodiesel production capacity stands at 2.36 million metric tonnes, although actual production in recent data reached 975,207 metric tonnes, indicating significant untapped potential in the sector.
“This shows that the industrial foundation, supply chains, and blending capabilities are already in place and only need to be systematically strengthened to provide greater benefits to the country,” he said.
The minister emphasised that the government will continue monitoring global developments, particularly the situation in West Asia, where recovery from the ongoing crisis is expected to take up to 18 months. Increasing the biodiesel blend is seen as a practical and readily available measure to enhance energy resilience and reduce dependence on external markets.
As of April 9, 2026, Euro 5 B10 diesel was priced at RM6.72 per litre, while the B7 blend was sold at RM6.92 per litre.
The B20 biodiesel programme was first officially launched in February 2020, and the latest move is expected to bring additional benefits to the palm oil industry and biodiesel producers by boosting domestic demand for palm-based biodiesel.
