PUTRAJAYA April 14, 2026 – The Malaysian government has announced an urgent step to strengthen the country’s diesel supply by increasing the biodiesel blend ratio, effective immediately.
Economy Minister Akmal Nasrullah Mohd Nasir, who is also the Member of Parliament for Johor Bahru, made the announcement following a meeting of the National Economic Action Council (MTEN).
“Just now I announced the Government’s decision through MTEN – biodiesel is now one of the main alternatives to further extend the availability of the country’s diesel supply IMMEDIATELY,” Akmal stated in a post on X today.
He added that he personally inspected the readiness of existing biodiesel blending operations only yesterday. “The industrial base, supply chain and blending capacity are indeed ‘ready’ for biodiesel production,” he said.
As a result, the government has agreed to raise the biodiesel blend rate from the current nationwide B10 (10% biodiesel) to B15 (15% biodiesel), beginning with an initial increase to B12.
The move leverages Malaysia’s well-established palm oil methyl ester (POME) biodiesel industry and existing infrastructure, allowing for a swift rollout without major new investments.
Akmal noted that he will explain the full implications of this policy change to the public tomorrow.
The announcement comes amid ongoing global energy market uncertainties, including geopolitical tensions that have affected fuel supply chains. By boosting the use of locally produced biodiesel, the government aims to reduce reliance on imported diesel and enhance energy security for Malaysian consumers and industries.
The video attached to the minister’s post shows him conducting a spot-check at a diesel supply facility, briefing staff, and outlining the new policy.
This initiative builds on Malaysia’s existing B10 biodiesel mandate and aligns with longer-term plans to gradually increase blends, supporting both the palm oil sector and national fuel sustainability goals.
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