KUALA LUMPUR (Nov 15): Putrajaya has decided to defer the implementation of the B10 and B7 biodiesel blends for the transport and industrial sectors, respectively in the country, without specifying an exact time frame for their eventual implementation. 
 
In a statement today, Minister of Plantation Industries and Commodities Mah Siew Keong said the decision to defer was made after taking into consideration the difference between crude palm oil (CPO) and diesel prices at current volatile market.
 
"I would like to announce that the implementation of Biodiesel Mandate for B10 in transportation sector and B7 in industrial sector will be deferred to a later date," he added. 
 
Although significant effort has been put in for the implementation, Mah pointed out that the government is committed to ensuring that there is no burden of extra cost on the rakyat at this time.
 
The government had agreed to strengthen the implementation of the Biodiesel Programme by increasing the blend for transportation sector to B10 and the B7 for the industrial sector.
 
Earlier, a source told theedgemarkets.com that the government had planned to progressively roll out the B10 and B7 biodiesel blends for the transport and industrial sectors respectively, starting Dec 1 this year.
 
This came after several delays since the plantation industries and commodities ministry's (MPIC) initial plan to roll out the programme in June this year.
 
The biodiesel programme was initiated to reduce dependence on petroleum diesel and the B5 was introduced for the transport sector in June 2011, in phases until March 2014 in Peninsular Malaysia.
 
This programme was then upgraded to B7 and implemented nationawide, including in Sabah and Sarawak.
 
However, the plan faced delays as the ministry received appeals from the Malaysia Automotive Institute saying there was inadequate data on whether the B10 biodiesel was compliant with specifications of all carmakers that have invested in Malaysia’s Energy Efficient Vehicle programme.
 
The B10 biodiesel blend is a mixture of 10% palm methyl ester and 90% petroleum diesel, while B7 is a blend of 7% palm methyl ester and 93% petroleum diesel.