Biodiesel Consumption Accounts for 29% of Total Energy in the Transportation Sector

Based on data from the Ministry of Energy and Mineral Resources, energy consumption in the transportation sector in 2018 reached 391.4 million barrels of oil equivalent (BOE). This figure represents a 111% increase compared to 186 million BOE in 2008, or an 11% annual increase. The rising fuel demand for the transportation sector and the increasingly limited production of fossil fuels necessitate annual imports to meet the demand.

(Read Databoks: How Much is National Energy Consumption?)

To reduce reliance on fossil fuels and curb the trade deficit in oil and gas, the government implemented a policy mandating the use of diesel fuel blended with palm oil (biodiesel) at 20%, often referred to as B20. The government also plans to implement a B30 policy starting in early January 2030.

The B20 mandate, implemented since 2018, has increased the biodiesel (gas oil) blend to 113.8 million BOE, or approximately 29.08% of total energy consumption in the transportation sector. This biodiesel blend is second only to gasoline (RON 88+90+92+95+98+100), which accounts for 50.8% of the total. Meanwhile, the blend of diesel fuel (Cetane Number/CN 48+51+53) accounts for 11.28%.