Malaysia

Rising diesel prices and fuel shortages are disrupting palm fruit harvesting in Malaysia and Indonesia. Smallholders in Borneo and Sumatra have reduced harvesting activity, raising the risk of lower palm oil production if the disruption continues.

In the Malaysian states of Sabah and Sarawak, the price of unsubsidized diesel has risen by almost 120%. The two states accounted for 43.9% of Malaysia’s 20.28 million tons of crude palm oil production in 2025. Subsidized diesel is available at US 51 cents (MYR 2.10) per liter, but the monthly allocation is capped at 200 liters, well below the 500 liters or more that farmers say they need.

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