Can palm biodiesel provide quick relief for Malaysia amid Iran war?

Malaysia is facing renewed pressure to expand the use of palm-based biodiesel as the Iran war drives up fuel costs, but industry and academic observers say high infrastructure costs and slow roll-out make it an unlikely source of quick relief.The Finance Ministry last month said petrol and diesel subsidies could reach 4 billion ringgit (US$903 million) a month with crude oil at about US$100 a barrel. Prime Minister Anwar Ibrahim has noted that nearly half of Malaysia’s oil supply passes through the Strait of Hormuz, which is mostly closed off to maritime traffic due to the Iran war, and that the country imports more oil than it exports.Diesel in Peninsular Malaysia rose to 6.02 ringgit a litre for the week of April 2 to 8, while the monthly subsidised RON95 quota under the BUDI95 scheme was cut from 300 litres to 200 litres.The fuel shock has reopened a long-running debate over whether Malaysia should accelerate its stalled B20 biodiesel programme, a fuel blend consisting of 20 per cent biodiesel and 80 per cent petroleum diesel.Workers transfer harvested palm fruits to a transport truck at a palm plantation in Pekanbaru. Malaysia is projected to produce 20.2 million tonnes of palm oil in the 2025-26 season. Photo: AFPFormer commodities minister Teresa Kok said late last month that palm methyl ester had become cheaper than pure diesel at prevailing prices and urged the government to revive delayed depot upgrades.