Deputy Prime Minister Najib Razak said today that Malaysia’s diesel will be blended with 5% palm oil before it is sold to consumers. This is part of a new fuel policy to be announced soon.
This is part of a push to promote the use of biodiesel instead of petroleum diesel that is mainly used now. It will also help reduce the government’s fuel subsidy bills. The 5% palm oil mixture would reduce diesel imports by half a million tonnes a year which is about 10,000 barrels a day.
Palm oil is RM1,300 a tonne while petroleum diesel is RM1,700 to RM2,000 a tonne.
The new bio-fuel policy is expected to be announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi at a commodities industry awards function tonight.
At the end of the day, I don’t think any savings will be passed on to us consumers. Subsidy will continue to be removed until we are all broke!
Source: Associated Press