03/12/2008 (Bernama), Kuala Lumpur - The government may bring forward to next month the use of biodiesel by government vehicles in an effort to increase the use of crude palm oil and push up the commodity price.

Discussions are underway with related government agencies on the matter, said Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui after opening a seminar on natural fibre composites here Wednesday.

"From the aspect of use by government agencies, we hope by January. If we are able to finalise all matters, maybe even earlier but this depends on the preparation, especially on the logistics aspect to ensure adequate supply," he said.

Initially, government vehicles are to start using biodiesel in February next year.

Chin said commercial vehicles would start using biodiesel in the second half of next year.

"We will look at the government agencies phase first and then the industry. I hope by the second half of next year we can begin with the industry," he said.

According to Chin, efforts to raise crude palm oil price has started to show results with the price going up by RM200 from RM1,400 per tonne to RM1,600 per tonne.

He said the government's programmes included the replanting of old oil palm trees to cut crude palm oil production as well as to stabilise the price at over RM2,000 per tonne.

Six companies, which accounted for about 60 percent of the country's total oil palm production, recently agreed to undertake the replanting of 200,000 hectares of old oil palm trees which will reduce the output by 700,000 tonnes.