KUALA LUMPUR, April 7 (Xinhua) -- Malaysia should accelerate the rollout of higher biodiesel blends to cushion the impact of rising global fuel prices and strengthen energy security, the Malaysian Biodiesel Association (MBA) said.
The ongoing Middle East conflict has disrupted key shipping routes and oil production, putting global fuel supply chains under severe pressure, and this has pushed up fuel costs worldwide, with direct consequences for domestic prices, inflation, and economic stability in Malaysia, the association said in a statement on Tuesday.
The group also called for incentives to promote voluntary biodiesel use outside the national program, including a 10 percent sales tax exemption. Widespread adoption, it said, would enhance energy security, reduce greenhouse gas emissions, lower foreign exchange exposure, strengthen fiscal resilience, and support the domestic palm oil sector and rural livelihoods.
MBA emphasized that higher blending mandates should be reinforced in the upcoming review of the National Biofuel Policy. The planned carbon tax mechanism could further justify the adoption of higher blends in transport and industrial sectors, while providing certainty for industry stakeholders, investors, and consumers.
"The current crisis presents not just risks, but an opportunity for Malaysia to advance sustainable, domestically anchored energy solutions," MBA said, adding that it is ready to work with the government and stakeholders to implement this critical national agenda. ■
