Unnithan noted the raising of biodiesel mandate from the current B7 to B10 would require 709,000 tonnes of palm oil to be converted into PME. This would bring down the nation's palm oil stocks and therefore support palm oil prices in the international market. Separately, RHB Research deputy director Hoe Lee Leng said, "Calls to raise the biodiesel mandate B10 has, so far this year, been delayed twice. Hoe calculated that the raising of biodiesel mandate in Malaysia would translate to an additional usage of 250,000 tonnes of palm oil per year. She noted that, the current price gap between petroleum and palm oil in the international market is around US$29 per barrel.

Source: New Strait Times November 03, 2016 11:39 UTC