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Malaysia to maintain B5 diesel price

Posted by Flora Sawita

KUALA LUMPUR: The government has assured that it would continue to keep B5 diesel pricing at the pump at RM1.80 per litre by absorbing the difference from world oil price.

B5 is a blend of 95 per cent regular diesel with five per cent palm biodiesel. "Right now, B5 is being subsidised at the pump in the central region of the country. We've allocated RM23.65 million in B5 subsidies from June to December 2011," said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok.

The rollout of B5 in Kuala Lumpur involves 247 service stations. About one million litres of palm oil biodiesel are being used each month. "This will contribute to a saving of close to 12.4 million litre of fossil diesel per year in Kuala Lumpur," Dompok told reporters last week after launching the fourth phase of B5 implementation at a service station along Jalan Kuching, Kuala Lumpur.

Previous central region launches covered Malacca, Negri Sembilan and Putrajaya.

On top of the B5 subsidies, the government has also allocated RM42 million to fund in-line blending facilities at six petroleum depots owned by five oil companies, namely Petronas, Shell, Esso, Chevron and Boustead Petroleum Marketing.

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