10/02/2009 (Bernama), Tawau - Vehicles of the Defence Ministry and Public Works Department (PWD) here are to use biodiesel fuel or B5 in April, Malaysian Palm Oil Board (MPOB) director-general Datuk Dr Mohd Basri Wahid said Tuesday.

He said discussions are in progress with the two agencies to ensure smooth implementation of the plan to use biodiesel fuel by government vehicles.

"We visited the PS depot terminal in Tanjung Batu (in Sabah) and we felt it is suitable to support the biodiesel plan. We will hold further discussions with the PWD and the Defence Ministry," he told reporters after opening the MPOB office Tawau branch.

Mohd Basri said MPOB's move to promote the use of biodiesel by vehicles of the two agencies was a periodical process by the Plantation Industries and Commodities Ministry to fully use biodiesel for all vehicles by 2010.

He said 3,900 vehicles of the Defence Ministry and the Kuala Lumpur City Hall are now fully using biodiesel since the trial period started on Feb 13 last year.

He said the industrial sector is also expected to use biodiesel in June while the transportation sector in early next year.

To realise the target, he said, the MPOB would hold talks with 36 depot owners nationwide.

He said the use of biodiesel as fuel is to reduce over-supply of palm oil and to stabilise palm oil prices in the market.

"When vehicles and the industrial sector fully use biodiesel, the palm oil stock can be reduced up to 500,000 tonnes a year," he added.