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Malaysia to implement B10 biodiesel mandate later in 2016, not in July
[KUALA LUMPUR] Malaysia's plans for a higher biodiesel mandate for the transport sector will not be implemented in July as initially expected, although the country said it remained committed to raise the minimum bio-content to 10 per cent this year.
The country had previously said it was in talks with oil companies about starting its so-called B10 biodiesel mandate in July, a month later than planned initially, and that it aimed to complete full implementation by August.
Talks with relevant stakeholders are still ongoing, a spokesperson from the ministry of plantation industry and commodities quoted minister Mah Siew Keong as saying. No further details were available on when B10 would be implemented.
The B10 programme aims to raise the minimum bio-content of biodiesel from the current 7 per cent, mopping up more palm oil for blending purposes and increasing demand for the tropical oil in Malaysia, the world's No 2 grower after Indonesia.
The delay in the implementation, however, could drag on benchmark palm oil futures that hit 10-month lows earlier this month.