Proposal on price stabilisation mechanism for biodiesel submitted to cabinet

KAJANG: The Ministry of Primary Industries has submitted a proposal on the price stabilisation mechanism to the cabinet in the quest to standardise biodiesel price in the market.

Its Minister, Teresa Kok said the ministry planned to further promote the use of biodiesel for transportation to enable the government to save RM1.64 billion in diesel import costs annually.

“I am waiting for the cabinet to approve the paper. My cabinet paper has yet to be tabled. Let the cabinet decides. It is cheaper to use biodiesel,” he told reporters after an announcement on the collaboration between the Malaysian Palm Oil Board and the Kajang Municipal Council on the use B20 biodiesel yesterday.

The B20 biodiesel, a blend of 20 per cent biodiesel oil with 80 per cent petroleum diesel, is being used as a fuel by the Kajang Municipal Council for five of its vehicles, including a Hino truck.

Kok said as diesel was more expensive than biodiesel, vehicle owners could save on their fuel consumption by switching to biodiesel.

Malaysia is currently in the process of implementing the B10 programme for the transportation sector which is expected to reduce greenhouse emission by 1.5 million tonnes of carbon dioxide equivalent per year.

The use of B10 is expected to help the country achieve a 40 per cent reduction in carbon emission by 2020. — Bernama