I think a lot of people miss out the cost wise.

1 barrel of crude oil - USD 70 = RM238
1 barrel = 159 litres

Crude oil cost you 238/159 = RM1.50/litres

1 tan of crude palm oil = RM2400
1 tan approximate 1000 litre

Crude palm oil cost = Rm2.40/litres.

How can bio-fuel fight with fossil fuel if cost wise already high at starting point, not to mention the technical difficulty for bio-fuel engine.

Unless legislation required, purely on commercial wise that everything talk about $$ and cost, there is no way bio-fuel can outmuscled fossil fuel.

Ask ourself, do you willing to pump Rm2.40/litres one instead of Rm1.50/litres if both are the same (in actual fact, bio-fuel still lose out to fossil fuel until now in term of technical wise)

Errr... I just highlight the feedstock or raw material price. When your raw material price is high, nothing you can do about it.

Both are (crude oil and CPO) are in raw form. CPO needs to be refined as well.

Petrol vs diesel price?

The topic here is about bio-fuel not petrol vs diesel.
It is 100% fossil fuel diesel vs bio-diesel.

Diesel and petrol come from the same feedstock aka crude oil.

Bio-diesel is just adding refined palm oil 10% into 90% fossil fuel diesel. So with cost wise CPO already higher in the first place, adding 10% will make it more expensive which is not an economical viable solution, nor will be well received by consumers.

Palm oil in not viable or feasible for replacing fossil fuel diesel because of cost wise, which is the major reason, why bio-diesel cannot move ahead.

This post has been edited by cherroy: Dec 17 2009, 12:44 AM