Economy minister Akmal Nasrullah Nasir says the government expects it will take up to 18 months to recover from the ongoing global energy crisis.
Economy minister Akmal Nasrullah Nasir said Putrajaya expects it will take up to 18 months to recover from the ongoing global energy crisis, with the National Energy Transition Council today agreeing that biodiesel is one of the most “practical and readily available” alternative biofuel sources that can be implemented in the near-term.
In a televised briefing on the global energy crisis, Akmal said the shift would begin with a phased introduction of B12, which would not incur any additional costs as it would utilise existing biodiesel blending infrastructure.
“The government must choose measures that can be implemented immediately, deliver direct impact, and are based on existing domestic capabilities.
“Biodiesel meets these requirements as it is an alternative energy source that can help reduce dependence on conventional fossil fuels, which are becoming increasingly volatile.
“The government believes that the use of biodiesel will help extend the country’s diesel supply,” he said.
Malaysia mandates 10% biodiesel for transportation nationwide, with a 20% mandate in Labuan, Langkawi, and Sarawak except Bintulu.
Akmal said the conflict in the Middle East has shown that countries could not continue to rely too heavily on imported fossil fuels and external markets.
He said the fact that a single geopolitical conflict could disrupt routes carrying about one-fifth of the world’s oil and gas supply proved that the global energy structure remained vulnerable to external shocks.
“As a medium-term measure, we must accelerate economic restructuring through a transition to renewable energy to ensure more secure domestic energy sources.
“In this context, the government is not only stabilising supply and prices but also building long-term resilience, given that recovery from this crisis is expected to take up to 18 months.”
Akmal said biodiesel is a practical solution as it can be used directly in existing diesel systems, particularly in the transport, logistics, agriculture and services sectors.
He also noted that the increase in biodiesel blend from B10 to B15 is supported by the upgrades of biodiesel depots under the 13th Malaysia Plan.
Since March 12, the price of diesel in West Malaysia has gone up from RM3.12 per litre to RM6.72 per litre. Diesel prices in Sabah, Sarawak and Labuan remain subsidised at RM2.15 per litre.
Iran has almost entirely blocked traffic in the Strait of Hormuz in response to strikes by the US and Israel in late February – sending global oil prices skyrocketing.
A US-Iran ceasefire last week raised hopes of resumed flows at the vital waterway through which 20% of world oil and gas regularly flows. While crude prices plunged by over 15% to dip below US$100 a barrel, it has surged to US$132.50 per barrel today.
However, US president Donald Trump has since announced that the US Navy would immediately begin a blockade of the Strait of Hormuz, including intercepting ships in international waters that had paid tolls to Iran.
He made the statement hours after the US-Iran peace talks ended without an agreement. - FMT
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