“We are discussing with all stakeholders to implement (the programme) smoothly,” Mah Siew Keong said at a press conference, without giving any reason for the delay.

The so-called B10 programme, which requires a minimum bio content of 10 percent in biodiesel for the transport sector, has already been delayed twice this year. It was initially scheduled for implementation in June before being postponed to July.

A higher biodiesel mandate would increase demand for palm oil, which is used as a component of biodiesel.

The full implementation of the B10 programme would consume 750,000 tonnes of oil palm a year, Mah said.

He also projected that the price of crude palm oil would average 2,500-2,600 ringgit per tonne this year. Benchmark palm oil prices were up 1.5 percent at 2,616 ringgit on Wednesday afternoon.