#EiTahuTak | Malaysia Can Cut Diesel Costs Using Its Own Alternative Fuel From Palm Oil

Business & Finance
13 Apr 2026 • 2:00 PM MYT
Badrulamin Luthfi
Badrulamin Luthfi

Menulis tentang gaya hidup, motivasi, kesihatan dan dunia digital

Image from: #EiTahuTak | Malaysia Can Cut Diesel Costs Using Its Own Alternative Fuel From Palm Oil
Ahmad Shabery Cheek drives a Felda vehicle powered by B100, with officials showcasing the biofuel’s capabilities. Image credit : thestar

In the wake of escalating tensions between the United States and Iran, energy markets are under unprecedented pressure, highlighting the vulnerability of nations reliant on imported fossil fuels. From my perspective, Malaysia’s move toward pure palm biodiesel (B100) is a strategic imperative for national energy security.

Pure biodiesel, or B100, differs from current blends like B7, B10, or B20, which rely partially on fossil fuels. B100 is fully renewable, made from locally produced crude palm oil, and now presents a competitive alternative to conventional diesel. While production costs were historically high, around RM4.40 per litre, current industrial diesel prices hovering near RM7 per litre make B100 a cost-effective option for transport, fisheries, and industrial sectors.

The timing of this shift is critical. Global oil markets are highly sensitive to geopolitical crises, including the ongoing US–Iran conflict. Any disruption in Middle Eastern oil supplies could spike global diesel prices, putting immense pressure on countries that rely heavily on imports. By developing domestic B100 capacity, Malaysia can buffer itself against these shocks, reduce subsidy burdens and strengthen energy independence.

Malaysia produces about 20 million tonnes of crude palm oil annually, theoretically sufficient to meet domestic diesel demand. Past limitations in processing capacity and market demand left many plants underutilized. Today, however, with strategic policy support, Malaysia could scale production to meet rising domestic needs and even stabilize fuel prices during international crises.

Felda’s pilot tests of B100 across 50,000 kilometres over 15 months have shown the fuel to be safe and practical, demonstrating that transitioning to higher blend levels like B20 or B30 at petrol stations is feasible. Beyond cost savings, B100 supports Malaysia’s climate commitments under the Paris Agreement, significantly reducing greenhouse gas emissions and contributing to the country’s net-zero 2050 target.

In essence, B100 biodiesel is more than a green alternative, it is a tool of resilience. In an era where global conflicts like the US–Iran war threaten energy stability, relying on domestically produced renewable fuels is both economically prudent and strategically wise. For Malaysia, embracing B100 is a way to safeguard the nation against volatile oil markets while advancing toward a sustainable, low-carbon future.


Image from: #EiTahuTak | Malaysia Can Cut Diesel Costs Using Its Own Alternative Fuel From Palm Oil

Share hidden facts about Malaysia and stand a chance to win prizes worth up to RM4,300! Find out how to join hereT&Cs apply.


Badrulamin Luthfi (mobamil96@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!

The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact creator@newswav.com.