Zahid, who is also deputy prime minister, said thorough ministry-agency coordination was needed to ensure that the rollout proceeds smoothly.

He said the nation would eventually transition to B20 biodiesel, and possibly B50 within two to three years.

“We are doing this in phases to ensure that (fluctuations in) crude palm oil prices will not affect biodiesel production,” he said at the rural and regional development ministry’s monthly assembly today.

On April 19, Zahid said the 19 biodiesel plants currently in operation could produce around 1.5 million litres of fuel a month.

He said their production capacity was sufficient to support domestic needs in the face of increasing fuel prices.

Economy minister Akmal Nasrullah Nasir also said that the planned transition from the current B10 mandate to B15, starting with B12, did not require major infrastructure upgrades and was largely an operational adjustment.

Meanwhile, Zahid said his ministry would save at least RM250 million from cost-cutting measures, in line with the recent directive from the finance ministry for ministries to trim spending.

“Even before the directive was issued, we showed the finance ministry how we had reduced programmes to focus on infrastructure, water and electricity supply, and rural needs,” he said.