Miami, FL (AHN) - The Malaysian government said gas pumps in that country will be selling diesel fuel made from palm oil by 2010.
The use of palm oil as a transportation fuel is the latest effort by the Malaysian government to boost faltering prices of the commodity, which have taken a hit because of rising inventories and the worsening global economic crisis.
Malaysia is the world's second-largest producer of crude palm oil. The government there has implemented mandates for biodiesel made from the oil and will give aid to the industry to replant as part of a package to increase demand and stave off oversupply, the Alibaba News Channel reported.The fuel is a blend of 5 percent palm oil and 95 percent conventional diesel fuel. The country's Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said by 2010, an estimated 500,000 tons of the fuel will need to be produced to sustain the palm oil industry. The mandate will require the production of 66 tons of palm-based biodiesel per year, the Malaysian National news Agency reported.
[Malaysia Mandates Diesel Made From Palm Oil AHN ]