Pertamina sees 54% biodiesel consumption hike on B15 but prices in the way

In Indonesia, Pertamina expects biodiesel consumption to jump 54% to around 2 million metric tons annually when the country switches over to B15 from the current B10. Yet the pricing scheme for Pertamina to buy biodiesel has kept it from making any deals with the three major producers this year, so far relying on stocks. Pricing would put palm oil biodiesel at around a $53/ton premium to fossil diesel at the moment yet economics typically dictates blending increases when the discount is at $150/ton, meaning that Pertamina refuses to buy until the pricing gets sorted out.