An article by Reuters.

Malaysia is set to impose a requirement for biodiesel to use 7 percent palmoil, up from 5 percent now, as a way of whittling down palmoil stocks and cushioning prices in the face of growing competition from other edible oils.

Industry and government officials in the world’s second-biggest palmoil producer said the “B7” biodiesel blend could be mandatory from December as talks with interested parties were nearing a conclusion.

“It’s targeted that B7 will be implemented in December. Once we switch to B7, there will be one grade — B7, not B5,” an official with the Malaysian Biodiesel Association with direct knowledge of the discussions told Reuters.

Crude palm oil is increasingly used as an additive to fossil fuels as it can reduce costs and cut down on environmentally damaging emissions.

A government official who declined to be named said Malaysia was ironing out details with car manufacturers.

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