Apparently diesel in the central region of the Peninsular Malaysia will be B5 biodiesel from June 2011 onwards. It was supposed to be implemented earlier but had a four year delay – and next year it will be here, apparently at the petroleum company and government’s cost.

The government will be spending RM43.1 million on developing six petroleum depots with biodiesel blending capabilities while all other costs (per litre costs?) will be born by the petroleum companies. At least that’s what Commodities Minister Tan Sri Bernard Dompok is saying for now, according to a report in The Edge. We might end up paying for this some way or another. The days of low subsidised diesel prices may just end soon. At least diesel will still be a good idea even after a price hike because it inherently has higher energy content and can go further on a litre compared to gasoline.

B5 is basically a blend of 95% regular petroleum-based diesel and 5% palm oil-based biodiesel. Apparently Sime Darby’s fleet of company 730Ld limos have been running on biodiesel fuel produced by the group and are running fine. I’ve contacted BMW Malaysia for clarification if the 320d, 520d, 730Ld and X5 3.0d can indeed run on the new B5 fuel without issues or not. I’ve also contacted Sime Darby AutoconneXion on their various non-truck passenger diesels. But there shouldn’t be an issue.

I will update you guys when I get answers.