# Why palm oil biofuel simply cannot replace fossil fuel yet in Malaysia

> The Malaysian Palm Oil Council CEO said Malaysia cannot replace fossil fuel with palm biodiesel, since its roughly 20 million tonnes of output is insufficient and biodiesel costs more than petroleum. Globally about 80% of palm oil goes to food and 20% to non-food, including biofuel.

- Date: 2020-01-25 · published 2020-01-25T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/54963-why-palm-oil-biofuel-simply-cannot-replace-fossil-fuel-yet-in-malaysia
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Limited palm supply for biodiesel caps how far biofuel mandates can lift palm demand, so the commentary offers little near-term price driver.

## Read by commodity

- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2017-12-30 | [2017 recovery year for ringgit, BNM measures place in check \| Malay Mail](https://feedsoft.ai/events/67746-2017-recovery-year-for-ringgit-bnm-measures-place-in-check-malay-mail.md) | +6.7% | +4.3% |
| PALMOIL | 2025-09-01 | [MYR/USD: Malaysia’s Currency Rally Not Over Yet as Analysts Eye Rate Cuts](https://feedsoft.ai/events/23587-myr-usd-malaysia-s-currency-rally-not-over-yet-as-analysts-eye-rate-cuts.md) | +2.4% | +1.0% |
| PALMOIL | 2017-07-25 | [Foreign investors are cashing in on Malaysia's improving economic prospects](https://feedsoft.ai/events/70229-foreign-investors-are-cashing-in-on-malaysia-s-improving-economic-prospects.md) | +1.0% | +4.5% |
| PALMOIL | 2024-11-01 | [Malaysian Ringgit Set for Biggest Monthly Decline Since 2015](https://feedsoft.ai/events/28131-malaysian-ringgit-set-for-biggest-monthly-decline-since-2015.md) | +9.9% | +9.2% |
| PALMOIL | 2017-06-29 | [Report: Ringgit strongest currency in Asia \| Malaysiakini](https://feedsoft.ai/events/70757-report-ringgit-strongest-currency-in-asia-malaysiakini.md) | +3.1% | +4.2% |

## Sources

- aseanenergy.org: https://aseanenergy.org/news-clipping/why-palm-oil-biofuel-simply-cannot-replace-fossil-fuel-yet-in-malaysia-2/

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