KUALA LUMPUR, March 29 — B20 biodiesel is now cheaper than pure diesel, and the government must fast-track critical depot upgrades to accelerate its rollout and ease surging fuel costs, says Seputeh MP Teresa Kok.
In a press statement, the former primary industries minister said palm-based biodiesel has become a more cost-effective alternative to fossil diesel and urged Putrajaya to urgently help the petroleum industry scale up B10 and B20 blending.
“We must treat palm oil as a strategic national asset,” she said.
“By failing to upgrade our depots, the government is forcing the rakyat to pay more at the pump while leaving our ‘golden crop’ underutilised,” she added
Citing market data as at March 27, 2026, Kok said palm methyl ester (PME) biodiesel is currently trading below international Euro 5 diesel prices.
Based on crude palm oil at RM4,500 per tonne and Euro 5 diesel at US$220 per barrel, she said a comparison of pure diesel and biodiesel blends shows the following indicative pump prices:
- B0 (pure diesel): RM5.53 per litre
- B7 (7 per cent biodiesel): RM5.46 per litre — saving 7 sen per litre
- B10 (10 per cent biodiesel): RM5.43 per litre — saving 10 sen per litre
- B20 (20 per cent biodiesel): RM5.33 per litre — saving 20 sen per litre
She said that crude palm oil at RM4,500 per tonne works out to about RM4.51 per litre of biodiesel, reinforcing the cost advantage of higher blends.
“It is deeply regrettable that the government has allowed the B20 programme to stall,” Kok said.
“Since its official launch in February 2020 by myself and then deputy prime minister Datuk Seri Dr Wan Azizah Wan Ismail, infrastructure development has been severely neglected.”
She said that while B20 has been rolled out in parts of Sarawak, Bintulu still lacks sufficient blending capacity, and several depots in Sandakan, Tawau and Kota Kinabalu in Sabah are awaiting upgrades.
In Peninsular Malaysia, she added, the situation is even more limited, with Langkawi among the earliest and few locations to offer B20 to consumers.
With conflict in the Middle East keeping global oil markets volatile, Kok said Malaysia can no longer afford to “brush aside” domestic energy solutions like palm-based biodiesel.
She called on the government to direct the Finance Ministry to immediately approve and expedite upgrades for 35 petroleum depots nationwide, provide incentives for the distribution and use of B10 and B20 blends, and complete stalled B20 infrastructure projects in Sarawak, Sabah and the peninsula.
