Indonesia and Malaysia may have to rethink biodiesel with oil at half price

In Indonesia and Malaysia, as much as the countries want to boost their blending mandates for palm oil biodiesel, the fact that the vegetable oil is twice the price as the fossil fuel alternative is putting a hitch in the economic plans to further roll out biofuels. Oil has fallen to 12-year lows while Indonesia looks to boost biodiesel blending to 20% and Malaysia to 10%. Already low demand from traditional imports has seen palm oil stocks grow in both countries, weighing on prices, and a pull back from either country’s plans for increased blending could further knock on prices.