KUALA LUMPUR - Malaysia has been making a slow, but steady progress in the implementation of the B5 biodiesel that was first introduced in 2006 to bolster the palm oil industry.

High crude oil prices had disrupted the original plans to introduce the blended fuel at petrol stations nationwide by middle of last year.

Despite the price uncertainties, the B5 programme finally was successfully implemented in phases in the central region of Peninsular Malaysia.

The initial areas included Putrajaya, Malacca, Negri Sembilan, Kuala Lumpur and Selangor and kicked off from June last year. 

Biodiesel producers, who have invested hundreds of millions of ringgit to capture demand for the renewable fuel, are confident that Malaysia is at the forefront of palm biodiesel technology.

Under the B5 programme, blenders must purchase the required quantity of palm biodiesel at the market price and blend it in the prescribed proportion.

According to the Malaysian Palm Oil Board, biodiesel producers are capable of producing two million tonnes of the eco-friendly fuel a year.

Implementation of the B5 mandate will lead to less use of depleting fossil fuel and help transport sector reduce emission of carbon dioxide .

However, the cabinet still needs to decide if consumers would have to pay extra for B5. 

The fuel costs an additional four to five sen a litre, which is mainly the cost to transport and blend the mixture. 

The government hopes to stick to the B5 blend as the production of biodiesel will take up about 500,000 tonnes of palm oil, which is good given the current high palm oil stock level.

As the world scrambles to look for an alternative fuel, car manufacturers, scientist, governments and others have taken initiatives to slow down the global consumption of the finite fossil fuel. 

For now, the B5 is only available at a few petrol stations, but it will eventually replace diesel nationwide.