14/01/2008 (My Iris) - Malaysian Palm Oil Board (MPOB) is likely to launch palm oil-blended diesel in the local market this year to save the domestic bio fuel industry.

Chairman of the Malaysian Palm Oil Board Sabri Ahmad said that MPOB may introduce a 2% blend of palm bio diesel with regular diesel initially.

Palm oil has shown more than 50% of growth in year 2007 and continues to make its new hike in recent weeks due to increasing demand from the food sector in Asia, lower output in Malaysia and surging global crude and vegetable oil markets.