Malaysia Officially Implements B15 Biodiesel Policy Today, Requiring 801,000 Tonnes of CPO Annually

KUALA LUMPUR, KOMPAS.com — Malaysia has officially implemented the B15 biodiesel policy nationwide from Monday, 1 June 2026. The move represents the latest step to increase palm oil-based fuel usage and bolster energy security amid global supply uncertainties.

Under B15, the biodiesel content in diesel for transport will rise from 10% (B10) to 15% (B15). The policy has been rolled out nationwide following confirmation of readiness in the domestic biodiesel industry, with 19 licensed plants set to produce B15 from 1 June 2026.

Malaysia’s Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stated the national B15 implementation requires approximately 801,000 tonnes of crude palm oil (CPO) annually, higher than the B10 programme’s previous demand of 534,000 tonnes. He added that the increased raw material demand is expected to strengthen domestic palm oil consumption and support the country’s palm oil plantation industry, while also aligning with government strategies to expand renewable energy use and reduce fossil fuel dependency.

Meanwhile, Plantation and Commodities Minister Datuk Seri Noraini Ahmad confirmed the B15 policy would significantly boost domestic CPO consumption. She noted the annual requirement of 801,000 tonnes of CPO exceeds the B10 programme’s 534,000 tonnes, and that higher biodiesel usage would help reinforce local palm oil demand and reduce reliance on imported fossil-based diesel.