Indonesia to implement B35 biodiesel from July 20 -official

JAKARTA, July 9 (Reuters) – Indonesia plans to extend the content material of palm oil-based gasoline in its biodiesel to 35%, referred to as B35, from 30%, beginning on July 20, senior vitality ministry official Dadan Kusdiana mentioned late on Friday.

The world’s largest palm oil producer is struggling to chop palm oil inventories after a three-week export ban ending in Could aimed toward controlling home cooking oil costs boosted shares.

The excessive inventory has been weighing on palm fruit costs, drawing criticism from farmers who’re within the midst of peak harvest season.

Dadan mentioned the rise would create extra demand for 727,804 KL of the palm oil gasoline this 12 months, taking the complete 12 months consumption to 10.88 million KL. Its consumption as much as July was estimated at 5.78 million KL.

The ministry would additionally launch a highway take a look at for B40 gasoline.

“Whereas we await the results of the B40 highway take a look at, the federal government would implement B35,” Dadan mentioned in an announcement.

Senior cupboard minister Luhut Pandjaitan this week estimated that a further 2.5 million tonnes of palm oil may very well be absorbed if Indonesia applied B40. learn extra

Different efforts authorities are contemplating to carry down inventories embrace decreasing a palm oil export levy to spur exports. learn extra

Reporting by Fransiska Nangoy; Modifying by Sandra Maler, Robert Birsel

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