PUTRAJAYA (Feb 12): Malaysia is mulling the possibility of setting up a fund to help contain future price fluctuations of biodiesel — comprising diesel and crude palm oil (CPO) — in ensuring that the programme remains attractive for domestic consumption, according to Primary Industries Minister Teresa Kok.
Kok told reporters on the sidelines of an industry forum held here today that the idea was brought up at a Cabinet meeting and further discussions are to follow.
“I have sort of suggested this in the Cabinet meeting before, but we still need deeper discussions with other ministries [such as the] Ministry of Finance, Prime Minister’s Department, Ministry of International Trade and Industry, and all other [relevant] ministries.
“We can also check how Indonesia and Thailand implement such systems and set up a stabilisation fund, and we can emulate them,” she added.
Meanwhile, Kok said the Ministry will have officers inspecting petrol stations throughout the country for compliance checks, as the mandatory B10 programme commenced on Feb 1.
Together with the B7 programme for the industrial sector starting in June, the mandates are said to help reduce high stock levels and encourage stable and better CPO prices by mopping up 761,000 tonnes of palm oil annually.
At 10.47 am, the benchmark palm oil contract for May delivery was traded RM9 lower, at RM2,276 a tonne.