Malaysian Diesel to be blended with Palm Oil soon

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

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • EngLee on Aug 11, 2005 at 3:36 am

    Great.. But still, I don't think it can be very much cheaper. Hopefully that doesn't hurt my car..

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  • They've tried this at all TNB's gen station. Some of the engineers said it is not suitable but it still can be used. I think for car it will affect performance a little bit. The upside to this a cleaner engine, less smoke, mor money for felda settlers like mawi's father who planted palm oil. Need a lot more studies. Last week I watched DW Automotor sports TV, the make some minor modification to the diesel engine before using the biodiesel. Needs more studies. Afterall, it is still an effort. A good one.

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  • Stupid people got stupid idea…

    please read the National Geographic August 2005 u will know the contra of

    Bio Fuel.

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  • Lotiman on Aug 11, 2005 at 6:28 am

    National Geographic August 2005??? Got URL??? I want to check it out.

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  • AlexC on Aug 11, 2005 at 7:25 am

    promote fuelcell la… sell palm oil must use that meh… all car makers trying to promote fuel cells, malaysia still doesnt have any unit available in market yet… what can i say, @#$%^*(((*$#… sorry, too many to verbalize…

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  • MutantTomato on Aug 11, 2005 at 7:26 am

    Lotiman: Bro, I might not be able to help you with palm oil based biofuels, but if you want another good article to read, type "Andrew+Kantor" at Google or Yahoo search.

    Here's a couple of links to his page:

    1. http://www.kantor.com/blog/2004/02/hydrogen_power…
    2. http://www.news.cornell.edu/Chronicles/8.23.01/Pi…

    This guy makes some pretty good points about why 85% ethanol based fuel is not a viable solution to the petroleum shortage problem.

    We should just go nuclear in cars! Then again, accidents could be sliiiiiightly more than just fatal for those involved in the crash…. ehehehehe!!! :)

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  • dorjee on Aug 11, 2005 at 7:31 am

    5% palm oil in diesel….

    5% more black smoke from your diesel engine….

    5% more revenue for JPJ…

    TPM Boleh!!!! Malaysia Boleh!!!!

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  • It was a magazines.. discuss about diffrent type of new energy this mth, about 10 pages. Pro & Con all inside.

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  • >promote fuelcell

    all fuel cells companies are strugling to survive…just look at Ballard and Plug power… It seems like they have to burn cash to make some electricity out of their FC.

    The fuel cell technology was discovered something like 100 years ago. The problem is not to build a fuel cell. but where to find the hydrogen to makes it works?

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  • hokkien lang. on Aug 11, 2005 at 9:04 am

    walao… if this really works malaysia got NEW KIND OF POLLUTION every where smell satay……..

    these tech PORIM got already… they got 2 perdana V6 with special engine….

    they say the smoke that car produce smell like satay…

    did i say that earlier?

    that car got heater not in air-cond, but for the enghine and tank… to keep

    the oil in liquid form…

    paul, may be you can hunt for this car……..

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  • hokkien lang. on Aug 11, 2005 at 9:12 am

    feul cell…. feul cell then hybrid all this i tell in my privius comment

    we need learn this tech now… not beli dan pasang.. did they think like 'gundam model'? what la…….then can modified…. change gear knob, cover the engine , change 'saga' to'megavavle' then the good logo change to thundercats logo… they think can play with our mind arr?

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  • MutantTomato on Aug 11, 2005 at 4:45 pm

    In my very humble opinion, here are some suggestions:

    1. Stop making F**KING SUV'S!!

    These pieces of shit, especially the American types, guzzle fuel like a mad alcoholic let loose in a whiskey storage.

    2. Make ALL cars hybrids

    Fuel cells, ethanol and palm oil based fuels are all good ideas, but not practical right now. The most practical is hybrid technology, proven by Toyota and their Prius. Several other car companies are also doing this. In hybrid cars, there are both the petrol driven engine and electric motor (Paul brother, maybe you could write about this? :) )

    If we can't completely find a replacement for petroluem products right now, then at least lets find a way to lessen consumption so that our remaining supply lasts longer.

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  • kete_lama on Aug 11, 2005 at 5:30 pm

    i think paul can explain or discuss about pro and cont for this subject. for example about biofuel, hybrid engine, ngv and many more. please bro go for it. i just want know the pro and con k. thanks.

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  • rainbow7j on Aug 11, 2005 at 7:57 pm

    there are also mony other type of bio-diesel currently being developed in other part of the world, yes it could be a colution to the ever rising petroleum prices …..

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  • Palm oil also not cheap what nowadays… treat is as cooking oil enough laaa… let say we have shortage of palm oil, takkan nak goreng ayam dengan bio diesel… KFC pun tutup kedai la…

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  • mitsu_galant_2000 on Aug 11, 2005 at 8:47 pm

    hehe..

    what a joke..

    comparing with ecres of corn farm..

    ithink its ok with Palm Oil.. no need like CORN farm..

    its big different between CORN and PALM OIL .. the size. the oil produced..

    all the way..

    but if i were american.. of course i dont want this to be happen fast..

    because = wasted time for war invaded Mid East for GAS!

    because it's gonna lowing the soya price laaa.. tot aledy palm oil is better than soya dua tiga kali ganda..

    so it gonna effect our country laa.. = bush aledy knew la..

    so .. tell everyone.. we american found this bad, and this bad for biobasedgas .. huh

    fuc* america and sekutu2nya

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  • hybrids….. it is the way to go.

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  • moo_t on Aug 11, 2005 at 10:10 pm

    http://en.wikipedia.org/wiki/Biodiesel

    Palm oil must be refined again to reach biodisel grade. This also mean a new refinery plant is require to fufill the demand of the additive requirement.

    So this will happens

    – Malaysia need to invest biodisel plant which may cost billions

    – It stablise the palm oil market slightly.

    1 barrels of crude oil (~USD60) = 159liters or USD 0.38 per liters

    1 tons of palm oil (~ USD360 ) = 1000 liters or USD 0.36 per liters

    In long term, it benefits the palm oil industry.

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  • mitsu_galant_2000 on Aug 11, 2005 at 10:19 pm

    actually even bad gov as we think.. some of their step is a good and visionized.. (except increased the petrol price lah)..

    After IT, now we're moving to bio tech..

    so this (tambah "minyak masak" dalam diesel).. is a good start for the future of our palm oil industries that's worth million dollar pe yer mah!. It's sold all over the world.. and malaysia is biggest supllier.. (but beware.. one day indonesia may potong us..

    it's the technology can put we always infront of other..

    so no matter bad u think THIS.. i stand for, it's a good idea all the way.. :)

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  • Pentan Sakua... on Aug 12, 2005 at 12:00 am

    What ever technology that we embrace, I think the most important factor is that we must ensure there is no need of any kind of permit or monopolisation to bring the technology in. We have seen that in the AP fiasco. The Government can regulate but do not make the technology a comodity just like the AP.

    Then I think we can be successful or, we can already presume what will happened.

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  • Lotiman on Aug 12, 2005 at 5:03 am

    To MutantTomato, Thx for your effort. I'll check it. Lately streamyx seem to be unstable. My line drop 10 times in 1 hour.

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  • enlightened on Aug 12, 2005 at 10:44 pm

    guys..perhaps we overlook and focus too much on cars? The real heavy user of diesel are in the industrial sector; eg. lorries, prime movers, pickups, etc, etc. I guess thats what the Pak Lah & Associate is trying to focus on…finding ways to save on subsidies while benefiting the local plantation. IMHO and some readings, fuel cell and hybrids can generate enuff energy to move the weight of that prime mover…my 2 cents..feel free to flame/critic/comment/compliment my views..cheers everyone!

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  • enlightened: note that pak lah did not say anything about price of diesel coming down with the biofuel mix. not even for the commercial sector.

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  • In some western countries they mix diesel and cooking oil and run their tractors on their farms…….

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  • enlightened on Aug 13, 2005 at 4:06 am

    hi paul: point noted but based on the press release..the government aim to save on that 5% which equals to 10k barrels a day. In a way, the government benefited by reducing subsidies…I do not anticipate neither nor expect any diesel price reduction cuz everything that is government related = upward trend. If we look at it at a broader aspect, I will agree with some of our fellow bros here that the plantation will have more job opportunities and what used to be diesel subsidies can channeled back into our own economy…but of course if such simple theory of cyclic economic works perfectly..but in real life..some of the money 'MIGHT' be channeled into other ppl's pocket..lets just hope that what the subsidies saving is channeled back into proper development such as welfare and transportation..instead of building impractical mega projects like futuristic police station which costs tens of ringgit in melaka..and other Exco member residential area..cheers!

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  • pierrelye on Aug 27, 2005 at 1:21 pm

    I produce biodiesel myself by using waste oil in U of Manitoba, canada. I run it in small vehicle with 80 percent blend. The result is very impressive. I think it is a good idea to blend palm oil with diesel. Everyone can do it, just try to lower the viscosity.

    I think malaysian should change the way of thinking, biofuel is the way to go.

    Compare to fuel cell and hydrogen, those technology is just sucking our tax money.

    As a mechanical engineer, hybrid+biofuel+solar is the future for malaysia's transportation. try to think about energy efficiency, cost effective and our environment. Reduce pollution can actually save us a lot of money, from government or anyone of us.

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  • i'm me on Aug 29, 2005 at 10:22 pm

    i agree with u pierrelye..i also done some research in utm,malaysia..and guess what? i've done my research before the diesel crisis too..what a coincidence..maybe we shouls get a bigger tank but the results is better than diesel..lower smoke,lower emission,same power output but slightly higher Nox..biofuel is way to go..but i think there is more better than diesel blended..the NGV..Petronas and Malaysia give RM 14Million to university develop a smaller ,cheaper and better gas station..which is 70% is already done…well…NGV is better lah..as tested before..1 kg/m3 NGV can delivered up 700km ..quite impressive huh..

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  • pierrelye on Aug 30, 2005 at 1:36 pm

    "It's me" Is NGV natural gas?

    It seems pretty interesting. Can you give me more information?

    I am going back to Malaysia soon. I want to know more about the development of alternative energy for transportation in Malaysia.

    Are you student? maybe we can do sth together?

    I am developing a simulator for plug-in hybrid electrical vehicle for my university. I wish to do some small project about it in Malaysia. Interested?

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