Indonesia rethinking biodiesel policy due to $865M deficit seen for 2021

December 2, 2020 |

In Indonesia, Reuters reports the government is working hard to find ways to keep its biodiesel program alive in the face of ongoing cheap oil prices and rising palm oil prices. An $865 million deficit in the biodiesel program’s budget due to the increasing gap between fossil and palm oil, currently four times last year’s at $400 per metric ton in 2020. An economist deduced the government needs to either boost its levy on palm oil exports from the current $55 per metric ton, boost taxes at the pump or get palm producers to help pay for the subsidy if the program was going to continue.

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Category: Fuels

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