Malaysia Begins Nationwide B15 Biodiesel Program to Boost Palm Oil Demand

Palm Oil Magazine
Starting June 2026, Malaysia will implement the B15 biodiesel mandate nationwide, aiming to increase domestic CPO consumption, cut fossil diesel imports, and support the country’s energy transition strategy. Photo by: Special

PALMOILMAGAZINE, KUALA LUMPUR — The Malaysian government has confirmed that the nationwide implementation of the B15 biodiesel mandate will officially take effect on June 1, 2026, marking a major step in strengthening domestic palm oil utilization and advancing renewable energy adoption.

According to reports from Bernama cited by Palmoilmagazine.com on Sunday (17/5/2026), Ministry of Plantation and Commodities Malaysia stated that all technical coordination processes with oil companies have been completed to ensure readiness across supply chains, logistics systems, and biodiesel blending depot infrastructure ahead of the rollout.

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Malaysia’s Minister of Plantation and Commodities, Noraini Ahmad, said the higher biodiesel blending mandate would be implemented through mechanisms coordinated by the national biofuel high-level committee.

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She explained that the B15 program is expected to reduce Malaysia’s dependence on imported diesel fuel, extend national fuel stock availability, and help stabilize domestic crude palm oil (CPO) prices.

“This policy will also contribute to lowering carbon emissions from the transportation sector in line with the National Agricommodity Policy and the National Energy Transition Roadmap,” Noraini said in an official statement.

She added that the transition toward B15 demonstrates Malaysia’s readiness in infrastructure development, engineering capabilities, and local industrial capacity to support palm oil-based renewable energy initiatives.

Also Read: KPBN CPO Prices Plunge Again to IDR 12,285/kg, Bursa Malaysia Remains Weak Due to Sluggish Exports

The Malaysian government also emphasized that increased domestic palm oil usage for energy purposes would not disrupt export supplies to global markets.

To oversee the implementation process, the Ministry of Plantation and Commodities is coordinating with the Ministry of Finance Malaysia, the Ministry of Domestic Trade and Cost of Living Malaysia, and the Royal Malaysian Customs Department.

In addition, the government is collaborating with the Ministry of Communications Malaysia to conduct public awareness campaigns and ensure accurate information regarding the nationwide B15 biodiesel implementation reaches the public effectively. (P2)


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