Saturday 04 May 2024
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This article first appeared in The Edge Financial Daily on November 1, 2018

KUALA LUMPUR: Primary Industries Minister Teresa Kok said the government will save about RM10.7 million per year in government subsidy if it adopts the B10 biodiesel programme for the transport industry.

On top of that, the government may also save about RM1.6 billion per year in diesel import costs, she told the Dewan Rakyat yesterday.

“The ministry of primary industries will present a cabinet memorandum in the near future regarding the proposal to increase the blend rate to B10 for the transport sector and to B7 for the industrial sector across the country. Both of these programmes are expected to use 760,000 tonnes of palm oil annually and will then strengthen palm oil prices in the market,” she said.

Kok said the blend rate available at petrol stations nationwide is now at B7 for the transport sector, but the industrial sector still uses diesel fuel. “If we look at the current price, the price of diesel for industries is between RM2.60 and RM2.80 per litre compared to biodiesel at RM2.281 per litre ... That means the use of B7 in the industrial sector will give a savings to the industries of RM6.5 million a year if the current price [is maintained],” she added.

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