Indonesia Cuts Cost Estimate For Turning Palm Oil Into Biodiesel

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Indonesia, the world’s largest palm-oil producer, has cut the cost assumption of converting crude palm oil into biodiesel by 20% to US$80 (RM341.44) per metric ton, according to the country’s Energy and Mineral Resources Ministry.

The revision, effective this month, is needed to ensure the mandatory programme to blend 30% of palm-biofuel with 70% gasoil, known as B30, continues even as the price gap between biodiesel and gasoil rises because of the pandemic, the ministry said in a statement on its website.

The ministry reduced the biodiesel market price index in June to 6,941 rupiah (RM2.12)/litre from May’s revised 8,352 rupiah/litre. A lower index will reduce the price gap for the B30 programme.

Source THEEDGEMARKETS

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