Crude oil’s crash jeopardises Asia’s cleaner fuel ambitions


Dateline 2020-03-10, FMT:

Shockwaves from the oil price crash have hammered Asia’s biofuels industry, upending optimism over its future.

Crude’s nosedive erases any chance of discretionary blending of palm oil with diesel and drastically inflates the cost of government mandates.

“These are unprecedented times,” said Alvin Tai, an analyst at Bloomberg Intelligence.

Biofuels, such as a blend of diesel with palm, need to be attractively priced compared with fossil fuels to encourage consumption, and that often requires subsidies.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: