# Malaysia ramps up biodiesel use amid soaring energy bills - CNA

> Malaysia is accelerating biodiesel use, with the government spending over US$1.8 billion monthly on fuel subsidies. Current mandates are B10, with plans to move toward B15 and later B20 or B30, and biodiesel is now cheaper than conventional diesel.

- Date: 2026-05-04 · published 2026-05-04T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/15473-malaysia-ramps-up-biodiesel-use-amid-soaring-energy-bills-cna
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Expanded domestic biodiesel demand absorbs palm oil that would otherwise be exported, supporting palm oil prices, though infrastructure constraints slow the transition.

## Read by commodity

- DIESEL: neutral
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-11-27 | [Malaysia’s biodiesel plan faces uphill struggle as crude slumps](https://feedsoft.ai/events/61911-malaysia-s-biodiesel-plan-faces-uphill-struggle-as-crude-slumps.md) | -1.1% | +2.6% |
| PALMOIL | 2023-05-17 | [Malaysia Says Committed to Raising Palm Oil Biodiesel Mandate](https://feedsoft.ai/events/15734-malaysia-says-committed-to-raising-palm-oil-biodiesel-mandate.md) | -1.4% | -6.4% |
| PALMOIL | 2021-12-01 | [Indonesia to ramp up biodiesel efforts to meet green energy targets,  official says \| Reuters](https://feedsoft.ai/events/15857-indonesia-to-ramp-up-biodiesel-efforts-to-meet-green-energy-targets-official.md) | -3.6% | -6.2% |
| PALMOIL | 2025-06-26 | [Malaysia mulls raising palm oil share in biodiesel - The HinduBusinessLine](https://feedsoft.ai/events/15553-malaysia-mulls-raising-palm-oil-share-in-biodiesel-the-hindubusinessline.md) | +2.8% | +6.1% |
| PALMOIL | 2023-10-03 | [Malaysia mulls expansion of B10 biodiesel usage to industrial sector](https://feedsoft.ai/events/15696-malaysia-mulls-expansion-of-b10-biodiesel-usage-to-industrial-sector.md) | -2.7% | -1.5% |
| DIESEL | 2020-02-05 | [U.S. biomass-based diesel tax credit renewed through 2022 in government spending bill - Mansfield Energy](https://feedsoft.ai/events/54471-u-s-biomass-based-diesel-tax-credit-renewed-through-2022-in-government-spending.md) | +2.6% | -2.6% |
| DIESEL | 2026-10-28 | [Northwest European diesel margins hold steady amid mixed signals By Investing.com](https://feedsoft.ai/events/277-northwest-european-diesel-margins-hold-steady-amid-mixed-signals-by-investing.md) | -4.2% | — |
| DIESEL | 2023-10-19 | [US oil refiners crank out diesel, further squeezing margins for gasoline](https://feedsoft.ai/events/33711-us-oil-refiners-crank-out-diesel-further-squeezing-margins-for-gasoline.md) | -4.4% | -8.6% |

## Sources

- channelnewsasia.com: https://www.channelnewsasia.com/asia/malaysia-biodiesel-biofuel-energy-crunch-oil-prices-6094726

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.