Realized biodiesel purchase this year seen below target
Monday, September 21 2020 - 04:57 PM WIB
The Ministry of Energy and Mineral Resources (MEMR) said the realized biodiesel absorption this year is likely to be below target of 9.6 million kiloliters (kl) that has been set by the government, partly due to low consumption on the back of the Covid-19 pandemic.
"Biodiesel consumption in 2020 is projected to be 13 percent lower than this year target due to Covid-19 pandemic," Director for Bioenergy at the Directorate General for New, Renewable and Energy Conservation (EBTKE) at the energy ministry, Feby Misna, said in a statement.
This year's biodiesel purchase is projected to reach 8.35 million kl, Feby Misna said.
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Nevertheless, the government is committed to continuing the biodiesel mandatory use program through the B30 program, which will continue to B40.
The MEMR said the realized biodiesel absorption in the first quarter reached 4.23 million kiloliters (kl), representing 44.06 percent of the full-year target of 9.6 million kl.
The consumption of biodiesel fuel has increased from 2.37 million kl in 2017 to 3.55 million kl in 2018 and further increased to 6.37 million kl in 2019. The increase was mainly driven by the expansion of B20 incentives to the non-public service obligation (PSO) sector.
Editing by Roffie Kurniawan