Kuala Lumpur, 5 June 2026 – Malaysia’s B15 biodiesel mandate is expected to provide a stronger domestic buffer for the palm oil industry, helping to shield producers from volatile export markets while reinforcing the country’s energy-security agenda.
The higher biodiesel blend, which raises the palm oil-based biodiesel content in transport fuel to 15%, is being positioned as a structural demand driver for crude palm oil. By lifting domestic consumption, the policy could reduce the sector’s dependence on external demand swings, especially at a time when global vegetable oil markets remain exposed to trade uncertainty, currency movements, weather disruptions and geopolitical risk.
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