Malaysia plans to roll out B15 biodiesel next month, increasing palm oil content in the diesel blend from the current 10% to 15% [1]. The government sees the move as a direct effort to reduce retail fuel prices, which remain high partly due to uncertainty linked to the ongoing Middle East conflict [1].
Currently, Petronas sells B10 biodiesel, which contains 10% palm oil mixed with diesel, and the shift to B15 represents a 50% increase in palm oil content [1]. A government minister described the B15 introduction as one of the "most practical and readily deployable" solutions to ease fuel costs [1].
The timing of the rollout in June aims to provide quicker relief for consumers facing elevated fuel prices. Retail fuel prices in Malaysia have stayed elevated amid global supply concerns and volatile crude prices influenced by geopolitical tensions in the Middle East [1].
The higher palm oil content in B15 biodiesel will more strongly tie Malaysia’s renewable fuel supply to its local palm oil industry. The adjustment may also help stabilize demand for palm oil amid fluctuating global prices [1].
Malaysia is moving ahead with the biodiesel upgrade at a time when many countries seek to balance energy security with environmental goals. The government considers stronger use of palm oil in biodiesel a key tool to support consumers and the agricultural sector.
The B15 biodiesel blend is scheduled to start rolling out nationwide in June 2026 [1].
