The government has rolled out the Biodiesel 20 programme as part of efforts to boost the use of palm oil and cut greenhouse emissions.
In a statement today, Primary Industries Minister Teresa Kok said that the fuel can now be purchased from the Petronas station at Kampung Tok Senik, Langkawi island for a fixed price of RM2.18 per litre.
She added that the fuel would be used by the transport sector on the popular holiday destination from Jan 1 this year.
“Labuan island will be the second destination for the Biodiesel 20 programme, and this will be implemented this January.
“The Biodiesel 20 programme will be rolled out in stages in Sarawak, Sabah and eventually throughout Peninsular Malaysia,” Kok said.
She expects Biodiesel 20, which following its namesake contains 20 percent of palm oil methyl esters, to gradually replace Biodiesel 10 fuel.
The government’s decision to set the same price for both fuels is to enable users to use “cleaner fuel” without having to pay more, she added.
“The main reason for using Biodiesel 20 is in line with the country’s aim of reducing greenhouse gases and making the country cleaner and more sustainable.
“Each ton of biodiesel will be able to reduce about three tons of carbon dioxide gas emitted from a diesel-powered vehicle. It is estimated that some 3.2 million metric tons per year of greenhouse gases will be reduced with the use of Biodiesel 20,” she explained.
Kok, whose ministry oversees the palm oil industry, also expected the programme to benefit palm oil smallholders.
“As the price of crude oil in the world market surpasses RM3,000 per ton, the Biodiesel 20 programme will help maintain the momentum of rising prices and further boost the household income of smallholders in the country,” she said.
The Biodiesel 20 programme is expected to require an additional 500,000 metric tons of palm oil compared with Biodiesel 10.