KUALA LUMPUR, May 8 (Bernama) -- The Plantation Industries and Commodities Ministry is studying a proposal to reduce road tax for ENVO Diesel-powered vehicles to encourage use of the fuel, the Dewan Negara was told Monday.

Its parliamentary secretary Datuk Dr S. Vijayaratnam said the ministry was considering the proposal and if it was found to be feasible, it would be recommended for the government's approval.

Replying to Datuk Dr Chin Fook Weng during question time, he said the ministry, in collaboration with the Malaysian Palm Oil Board, was also identifying petrol stations which could supply ENVO Diesel to the public on a trial basis.

Currently, ENVO Diesel, a mixture of five per cent processed palm oil (palm olein) with 95 per cent diesel, is being tried out on vehicles of the ministry's agencies, Defence Ministry, Public Works Department and Kuala Lumpur City Hall.

Mandatory use of ENVO Diesel by the public is expected to come into force next year.

The use of ENVO Diesel was good for environmental preservation as it was made from renewable source and emitted lesser carbonic smoke compared to diesel-powered vehicles.

"The use of ENVO Diesel will also help reduce the palm oil stock and this will stabilise the commodity's price in the market besides boosting the competitive edge of palm oil in the global market place.

"The ministry hopes benefits enjoyed from the use of ENVO Diesel will attract and encourage the people to use the fuel," he added.

-- BERNAMA