12/02/2008 (International Herald Tribune, France), Kuala Lumpur - Malaysia is reviewing plans for mandatory blending of palm oil and diesel for biofuel after prices of the commodity more than doubled in two years, a Cabinet minister said Tuesday.

Crude palm oil prices have soared to more than 3,000 ringgit (US$928; €638) a metric ton from about 1,400 ringgit a ton since the National Biofuel Policy was formulated in 2006, said Plantation Industries and Commodities Minister Peter Chin.

At the same time, crude oil prices have increased by two-thirds over the same period to nearly US$100 (€69) a barrel, he said.

"The government is still studying costs and benefits of implementing biodiesel blending," Chin said.

Malaysia is one of the world's top producer of palm oil, an edible oil also being developed for use as a replacement for fossil fuels. Officials said the rocketing palm oil prices have put biofuel projects in jeopardy, with only 4 companies in operation although 91 licenses have been issued.

"It is time to take stock. If they aren't interested, the companies should return the licenses," Chin said.

"We are looking into the costs involved and how it will fit into the decisions of the government regarding subsidy and price mechanism for diesel," he said, without elaborating.

Officials have said that oilseeds, jathropha and palm biomass are being explored as cheaper alternatives to palm oil in making biofuels.