23/03/2016 (Bernama) - The implementation of the biofuel programme will not only increase domestic consumption of palm oil, including crude palm oil (CPO), but reduce inventories and stabilise prices, says the Ministry of Plantation Industries and Commodities.

It said the programme would also improve the value of palm oil exports, hence, providing higher income for smallholders.

It said with more palm oil being used by the biodiesel industry, the country would gain from reduced green house emmission and foreign exchange savings as less diesel woudl be imported.

"The government introduced the B7 Programme -- a mixture of seven per cent palm oil biodiesel and 93 per cent petroleum diesel -- for the transport sector in November 2014," the ministry said in a written reply to Datuk Wee Jeck Seng (BN-Tanjong Piai) at the Dewan Rakyat Tuesday.

Currently, there are 18 biofuel plants in the country with an installed capacity of 2.3 million tonnes, annually.

Recently, Plantation Industries and Commodities Minister Datuk Seri Douglas Uggah Embas was reported as saying that he was confident the B10 biodiesel programme would be implemented this year.

The programme mandates a minimum of 10 per cent bio content in diesel.