Subsidy savings for government with B10 mandate

In Malaysia, Primary Industries Minister Teresa Kok said the government will save a significant amount of money in subsidy savings with the implementation of the B10 biodiesel mandate that goes into effect in mid-2019. The lower biodiesel price, as compared to current biodiesel price, per liter is expected to help that cost savings as the mandate is increasing the biodiesel blend from the current 7% to 10%.

“If B10 is used in the transportation sector, it will allow the government to save up to RM10.7 million a year on fuel subsidies. This will also allow us to reduce diesel import costs by RM1.6 billion per annum,” Kok told The Malaysian Reserve. Kok also said the industrial sector could also see a reduction in costs by RM6.5 million a year, if the current price gap between biodiesel and diesel is maintained.