Palm oil producers ask government to back down from B20

January 21, 2016 |

In Indonesia, despite assurances from the palm oil fund that the B20 blending mandate would be met, the palm oil producers association is asking for the mandate to be lowered in fear of oil companies’ failure to pay due to low oil prices and margins. Though the fund expects to earn $1.15 billion in levies this year to pay for biodiesel subsidies, it’s still likely to be $143 million short. The association is also calling on the government to follow through with the fund’s original intention to help pay for planting new trees and farmer training rather than just pay for subsidies.

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Category: Policy

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