Deputy minister says B15 will not affect cooking oil or food industry as extra palm oil use is only 1.5% of total supply.
KUALA LUMPUR: The implementation of increasing the biodiesel blend to B15 will not affect the supply of cooking oil and the domestic food industry because the additional palm oil usage only represents about 1.5 per cent of the country’s total palm oil supply.
Deputy Plantation and Commodities Minister Datuk Seri Huang Tiong Sii said that based on the current assessment, the additional palm oil consumption for the implementation of B15 is estimated at 330,000 tonnes per year and is still at a manageable level.
He said the amount is not expected to affect the stability of domestic supply since the country has a strong palm oil supply base.
“Based on the 2025 palm oil supply balance data, the country has an initial stock of 1.71 million tonnes, production of 20.28 million tonnes and imports of 0.77 million tonnes.
“This supply is not only able to meet exports of 15.27 million tonnes, but also supports domestic consumption of 4.43 million tonnes for various local sectors, with the final stock estimated to remain at 3.05 million tonnes,” he said during a question and answer session at the Dewan Rakyat today.
He was responding to a supplementary question from Rodiyah Sapiee (GPS-Batang Sadong) on whether the implementation of B15 would affect the supply of cooking oil in the country as well as the government’s strategy to ensure that the supply and price of palm oil remain stable if demand from the biodiesel sector increases in the future.
Huang said the additional palm oil usage required for the implementation of B15 would not reduce the supply of raw materials allocated to the food industry, consumer goods sector, and existing exports.
He noted that the government continuously collaborates with the palm oil industry to ensure that the supply of crude palm oil remains sufficient to meet domestic needs, including those of the food sector and downstream industries.
“At the same time, the government is committed to ensuring that cooking oil prices remain stable and affordable through various regulatory mechanisms,” he said.
He said the government, through the Ministry of Domestic Trade and Cost of Living, was also implementing continuous monitoring of the distribution and sale of cooking oil to curb embezzlement, smuggling and hoarding activities.
“This measure is important to ensure an adequate supply of cooking oil and protect the interests of consumers,” he said.
