Southeast region cuts palm oil export tax. How will it impact the biodiesel market?
- 13-May-2022 8:00 PM
- Journalist: Francis Stokes
Kuala Lumpur: Malaysian government officials may curtail the tax imposed on palm oil exports and land at 4-6% from 8%. Palm oil is one of the significant raw ingredients required for producing Biodiesel, and countries like Indonesia and Malaysia dominate the palm oil production market. With the hike in palm oil prices globally, the biodiesel market dynamics also fluctuated. Furthermore, firm demand for Biodiesel is elevated in the international market.
The rising costs of these feedstocks have relatively impacted the manufacturing cost of Biodiesel in the worldwide market. Asia-Pacific region is one of the significant consumers of Biodiesel, and mindfulness among individuals has constrained the public authority to expand the production of Biodiesel to take care of the regional interest. Essential producers in palm oil-producing nations have confronted feed supply deficiencies after deforestation and popularity in the global market.
As per the resources, Malaysia will facilitate its B30 order, which requires a part of its Biodiesel blended in with 30% of palm oil to focus on supply to food enterprises. Furthermore, Plantation Industries and Commodities Minister Zuraida Kamaruddin of Malaysia said that this crucial step had to be taken amid the edible oil crisis occurring due to the Russia Ukraine war.
After Russia attacks Ukraine, Malaysia hopes to help its portion of the consumable oil market upset sunflower oil shipments. Indonesia's transition to boycott palm oil sends out additional fixed worldwide supplies. Other Asian countries, such as India, have planned to follow the B15 policy, and soaring prices of palm oil and supply shortages with manufacturers have shown its ripple effects on Biodiesel prices in the regional market.
As per ChemAnalyst, the market dynamics of Biodiesel might proceed to its prospering price attributable to appeal from biofuel manufacturers and energy producers. Its applications in transportation to chop down the fossil fuel by-product of vehicles into the climate will oversee the market opinions of Biodiesel.