Malaysia to delay nationwide rollout of B20 biodiesel mandate due to coronavirus curbs

[KUALA LUMPUR] Malaysia aims to delay the nationwide implementation of plans to increase the use of palm oil in biodiesel, according to the Malaysian Biodiesel Association, as the country imposes restrictions on movement to contain the coronavirus outbreak.

The world's second-largest producer of palm oil, Malaysia has one of the highest numbers of infections of Covid-19 in Southeast Asia with over 5,000 cases, 85 of whom have died.

The mandate to manufacture biofuel with a 20 per cent palm oil component - known as B20 - for the transport sector was first rolled out in January, and was scheduled to be fully implemented across the country by mid-June 2021.

The rollout will be paused for regions that have yet to implement it, U. R. Unnithan, president of the Malaysian Biodiesel Association told Reuters on Thursday.

"This might be reviewed after the movement control order is lifted," he said.

Mr Unnithan confirmed that the Plantation Industries and Commodities Ministry had sent an official letter to petroleum companies and the biodiesel association informing them of the postponement.

"The ministry proposes to hold a detailed meeting with petroleum companies before deciding on a new implementation date for the three zones (that have yet to implement it)," according to the letter, reviewed by Reuters.

REUTERS