B50 diesel blend set to launch in July 2026 – what will the price be?

The Ministry of Energy and Mineral Resources (ESDM) aims to implement a mandatory 50% palm oil biodiesel blend (B50) by July 2026. The fuel has already undergone several vehicle test phases. Eniya Listiani Dewi, Director General of Renewable Energy, New Energy, and Energy conservation at ESDM, said increasing the palm oil blend would shift diesel demand to domestic production. The government is finalising technical tests for B50 use in the field. “Currently, the blend is at 40%, and we will increase it to 50% in July to eliminate diesel imports,” Eniya said at The 50th IPA Convention & Exhibition in ICE BSD, Tangerang. The mandatory policy will apply nationwide across all diesel engine sectors to avoid infrastructure issues. “Insha Allah, it will start on 1 July. All sectors will switch to B50 simultaneously to prevent infrastructure complications,” she said. Eniya did not disclose the B50 retail price but stated it would follow existing regulations. The government will announce monthly benchmark prices to ensure certainty for businesses and consumers. “It will follow a formula, with prices released monthly,” she said during a visit to the B50 blending and testing station in Lembang. The ministry is coordinating with the Directorate General of Oil and Gas to determine FAME (Fatty Acid methyl Ester) component calculations. “We’re still calculating, but we expect sufficient FAME supply,” Eniya said when questioned about raw material readiness. ESDM data projects B50 will generate significant economic benefits by increasing crude palm oil (CPO) value. Fiscally, it could save Rp 157.28 trillion in foreign exchange in 2026, up from Rp 140 trillion under B40. Vehicle tests show B50 maintains engine performance. Components like filters last longer than previous fuels. “Tests up to 50,000km exceed specifications. For example, filters that should be changed every 10,000km last up to 30,000km,” Eniya said. Cold start tests in Bromo confirmed reliability in low temperatures. “The engine started in under a second, even 0.8 seconds,” she added, noting success in automotive aspects. Environmentally, B50 aims to cut greenhouse emissions by 46.72 million tons of CO₂ in 2026. As of mid-April 2026, national biodiesel distribution reached 3.9 million litres, 24.9% of the initial annual allocation of 15.65 million litres. Technically, B50 specifications include maximum 300 ppm water content and 0.47% monoglycerides, with oxidation stability of at least 900 minutes to ensure quality during storage and distribution. ESDM aims to complete all automotive tests by June 2026, with other sectors like heavy machinery and railways by year-end. With reliable test results, B50 will strengthen national energy independence.