# Malaysia to tap idle biodiesel capacity to cushion fuel price shocks | S&P Global

> Malaysia will raise its biodiesel blend mandate from B10 to B15, starting with a B12 rollout, to reduce diesel imports amid the West Asia fuel crisis. Biodiesel sector capacity utilisation is only 58%. The move follows Indonesia's expansion of its mandate to B50 by July.

- Date: 2026-04-14 · published 2026-04-14T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/15477-malaysia-to-tap-idle-biodiesel-capacity-to-cushion-fuel-price-shocks-s-and-p
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Higher blending mandates lift domestic palm oil use and can draw on idle capacity, tightening palm supply for export. This supports palm oil prices.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-08-06 | [Global palm oil prices set to rise on Indonesia's biodiesel mandate](https://feedsoft.ai/events/63406-global-palm-oil-prices-set-to-rise-on-indonesia-s-biodiesel-mandate.md) | +1.8% | +0.9% |
| PALMOIL | 2017-03-07 | [Malaysia’s biodiesel production to rebound this year \| The Star](https://feedsoft.ai/events/71877-malaysia-s-biodiesel-production-to-rebound-this-year-the-star.md) | -4.1% | -7.2% |
| PALMOIL | 2022-04-26 | [Malaysia's biodiesel group opposes reduction of biofuel mandate](https://feedsoft.ai/events/15828-malaysia-s-biodiesel-group-opposes-reduction-of-biofuel-mandate.md) | +10.6% | -0.0% |
| PALMOIL | 2022-03-24 | [Indonesia, Malaysia commit to biodiesel mandates despite higher prices \| Reuters](https://feedsoft.ai/events/15832-indonesia-malaysia-commit-to-biodiesel-mandates-despite-higher-prices-reuters.md) | -0.9% | -4.0% |
| PALMOIL | 2021-12-13 | [Malaysia, Chinese firm sign deal on 2nd-generation biodiesel, biojet fuel \| Reuters](https://feedsoft.ai/events/15861-malaysia-chinese-firm-sign-deal-on-2nd-generation-biodiesel-biojet-fuel-reuters.md) | -2.3% | +5.6% |

## Sources

- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/agriculture/041426-malaysia-to-tap-idle-biodiesel-capacity-to-cushion-fuel-price-shocks

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