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National Biodiesel Programme to use 1.13m tonnes of palm oil by 2026

State Election

Johor State Election 2026

11 July 2026 Johor, Malaysia
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Malaysia’s National Biodiesel Programme is set to consume 1.13 million tonnes of palm oil by end-2026, driven by B15 implementation.

KUALA LUMPUR: The National Biodiesel Programme is expected to use approximately 1.13 million tonnes of palm oil by the end of 2026, according to the Ministry of Plantation and Commodities (KPK).

The figure takes into account the existing use of crude palm oil (CPO) in 2025 as well as the estimated increase in CPO usage following the implementation of B15 biodiesel from June this year.

“In 2025, the use of palm methyl ester (PME) for B10 and B20 in the transportation sector and B7 in the industrial sector amounted to 934,823.31 tonnes, while the implementation of B15 from June 2026 is expected to increase CPO usage by approximately 330,000 tonnes per year for domestic transportation biodiesel.

“So, when the existing CPO usage data for 2025 is combined with the estimated increase resulting from the implementation of B15, the total palm oil usage for the National Biodiesel Programme is expected to reach around 1.13 million tonnes by the end of 2026,” KPK said in a written response published on the Parliament website yesterday (July 13).

The ministry said this in response to Teresa Kok Suh Sim (PH-Seputeh) regarding the status of upgrading all biodiesel depots in Malaysia to store, blend, and distribute B20 biodiesel, as well as the expected volume and value of palm oil to be used as biodiesel until the end of this year.

Regarding the status of the biodiesel depot upgrades, KPK said the engineering design work for all four depots had been completed, including the construction of biodiesel tanks, the installation of biodiesel reception systems, and the construction of new pipes and meters.

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