The government is hoping to continue with the implementation of the full B5 programme, said Minister of Plantation Industries and Commodities, Tan Sri Bernard Dompok on Tuesday.
Late last year, the ministry said it planned to reduce the bio-fuel blend with fossil fuel diesel to three per cent from five per cent, due to the slow take up.
The B5 programme was introduced in February last year and calls for a five per cent blend of palm methyl ester with diesel for government vehicles.
“I am preparing a cabinet paper based on the findings of the recent Cabinet Committee meeting chaired by Prime Minister Datuk Seri Najib Tun Razak.
“We are hoping to go for the full B5,” he said after launching the Malaysia Strategic Outlook Conference 2010 here.
He said to implement the B5 programme, fuel prices need to be increased by another four sen.
“We need an extra four sen to implement the B5 and the issue now is, how to get the money to implement the programme, as well as who is going to take the first step?
“Its either the government, the consumer or oil companies,” he added.
He said the government is looking to push the usage of B5 in stages, starting from the central region of peninsular, followed by other states.
He added that implementation of the B5 programme is likely to be this year.