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NewsOils and Fats Sector Coverage

Malaysia to Roll Out B15 Biodiesel in Stages to Protect Fuel Supply Chain

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Economy Minister Akmal Nasrullah Mohd Nasir said implementation of the B15 biodiesel blend will be carried out in stages to avoid disruption to current industry operations.

He said the gradual approach is necessary to carefully organize operational aspects, especially at blending centers, without affecting the existing supply chain.

The minister said that if the process only involves arranging operations at blending centers without the need for infrastructure upgrades, the blending rate can be increased from B10 to B15.

However, he stressed that this must be done progressively and in stages to ensure existing operations are not disrupted.

What Is B15 Fuel?

B15 refers to a blend consisting of 15% palm oil-based biodiesel and 85% petroleum diesel, compared with the current B10 blend of 10% biodiesel and 90% regular diesel.

The minister said higher blending levels such as B20 and B30 would require further infrastructure improvements and investment.

Initiative Objectives

The government had previously approved increasing the biodiesel blend rate from B10 to B15, starting with B12, without additional costs, following developments linked to the Middle East crisis.

The step aims to:

  • ensure diesel supply remains available for a longer period;
  • reduce dependence on fossil fuel imports;
  • limit exposure to global market volatility;
  • accelerate economic restructuring through the transition to renewable energy.

Separately, the minister said he would visit a Port Klang facility with the plantation and commodities minister to assess its readiness for biodiesel production.

Source: Bernama