Biodiesel production almost doubled in 2013 to keep pace with expansion of distribution areas complying with the B5 mandate and also to meet demand in the export market. Nonetheless, output remains well below capacity. Production in 2014 will have to increase again to fulfill full implementation of the B5 mandate. Palm oil prices vis-à-vis petroleum prices, combined with domestic fuel subsidies, continue to hinder expansion in biodiesel production.
