Vegetable Oil Prices – Historical Graph

Real-time chart of historical daily vegetable oil prices. The prices are shown in 16 liters.
The current price is and is last updated on .
  • The average price in the past 3 days is
  • The average price in the past 7 days is
  • The average price in the past 30 days is
  • The average price in the past 365 days is

Vegetable Oil Prices Explained

Among the many uses for vegetable oil are the production of soap, biodiesel, cosmetics, and pesticides. One of the main energy sources that is largely renewable over time is oil. Due to the post-industrial revolution increases in per capita income and population growth, its production has multiplied.

Furthermore, vegetable oil prices have an impact on stakeholders in a variety of industries and geographical areas. They also have a major role in several economic, social, and environmental factors.

Why are vegetable oil prices fluctuating?

1. Demand Dynamics

Prices for vegetable oil are greatly impacted by the changes in supply and demand. Also, modifications to agricultural techniques, variations in consumer tastes, and meteorological conditions influence the commodity’s price.

For instance, Thomas Mielke (a leading industry analyst in Hamburg-based research firm Oil World ) expressed in a conference in March 2023 that the market for vegetable oils is expected to tighten for a year as demand rises to generate biodiesel in Indonesia while growth in palm oil output has halted.

As a result, Malaysian refined bleached deodorized (RBD) palm olein prices might rise by over 16% from then to $1,150 per tonne in the second half of 2023.

2. Global Economic Conditions

Vegetable oil costs are determined by economic factors such as variations in GDP (Gross Domestic Product) growth, inflation rates, and currency exchange rates.

For example, according to the UN Food and Agriculture Organization, the price of vegetable oil reached a record high globally in February which rose by 23% in March  2022.

Additionally, as stated by Gro Intelligence, an agriculture data platform, the oils typically used by food manufacturers in the United States have increased by 152% over the previous two years and by 45% since last March 2022, exceeding overall food inflation.

3. Government Policies and Regulations

Vegetable oil prices are subject to governmental laws and regulations, including trade agreements, tariffs, and subsidies. For instance, India’s retail inflation reached a four-month high of 5.69% in December 2023 due to higher prices for cereals, pulses, and some vegetables.

As a result, the government announced in January 2024 to keep importing edible oil at a reduced tariff until March 2025. The goal is to control local pricing and avoid any more significant increases.

Also, the reduced structure of import duties on crude oils, such as sunflower, soy, and palm will extend over the same period.

4. Energy Prices

It is common practice to use vegetable oils as feedstocks while producing biodiesel. Thus, any changes in biodiesel demand and supply impact the price of vegetable oil.

For example, global biofuel targets, tightening supply, and China’s comeback into the market drove an increase in vegetable oil prices for the remainder of 2023. Additionally, the production shortage in vegetable oils while meeting the existing biofuel targets will fuel the commodity’s marketability in 2024.

Which variables impact the price of vegetable oil?

  • Demand Dynamics
  • Global Economic Conditions
  • Government Policies and Regulations
  • Energy Prices
  • Climate and Weather Events

Where does vegetable oil come from?

Vegetable oil is obtained by pressing or extraction techniques from various plant sources. Typical sources of vegetable oil include the following:

1. Soybean – The most commonly consumed vegetable oil worldwide. It is taken from soybeans, a significant commodity farmed mostly in China, Brazil, Argentina, and the United States.

2. Palm Fruit – Another important vegetable oil is palm oil, which is made from the fruit of oil palm trees. Though it is grown in other tropical places, Indonesia and Malaysia are the major producers of this commodity.

3. Sunflower Seeds – They are used to make sunflower oil. The United States, Argentina, Russia, Ukraine, and other significant producers are among the countries that cultivate sunflowers.

4. Rapeseeds (Canola) – Rapeseed is mostly farmed in Canada, China, India, and some European nations. Low saturated fat and high monounsaturated fat are characteristics of canola oil.

5. Olive – It is obtained from the fruit of olive trees, which mostly grow in Mediterranean nations like Tunisia, Spain, Italy, and Greece.

6. Coconuts – The meat or kernel of mature coconuts is used to make coconut oil. Tropical countries including the Philippines, Indonesia, India, and Sri Lanka are the primary producers of it.

7. Corn (Maize) – The kernel of maize is used to obtain corn oil. Numerous nations, including the U.S., China, Brazil, and Argentina, cultivate corn as a significant crop.

8. Cottonseed – Cottonseed oil is derived from the seeds of cotton plants, which are mainly cultivated for their fiber. Pakistan, China, India, and the United States are the primary producers of it.

What are the uses of vegetable oil?

Vegetable oil is a product used in numerous sectors and applications. Among the many applications for vegetable oil are:

1. Cooking and Food Preparation – In cuisine, vegetable oils are frequently used for frying, sautéing, baking, and making salad dressings. Because of their high smoke points, they enhance flavor, moisture, and texture in food and act as a cooking medium.

2. Food Processing – Vegetable oil is used in several products, including processed foods, salad dressings, baked goods, margarine, and snacks. It serves as an ingredient, taste enhancer, and flavor carrier.

3. Biofuel Production – Some vegetable oils are used as feedstocks to make biodiesel, including soybean, palm, and rapeseed (canola) oils. Biodiesel is a renewable fuel that lowers greenhouse gas emissions and dependence on fossil fuels.

4. Industrial Applications – Lubricants, hydraulic fluids, cutting fluids, paints, varnishes, adhesives, and bio-based plastics use vegetable oils due to their lubricating qualities, biodegradability, and renewability. Additionally, they are environmentally friendly products that replace petroleum-based ones.

5. Cosmetics and Personal Care Products – Cosmetics and personal care products like moisturizers, lotions, creams, soaps, shampoos, and conditioners often contain vegetable oils as they provide hydration and nourishment to the hair and skin.

6. Pharmaceuticals – Certain vegetable oils serve as carriers for active substances in pharmaceutical formulations. Also, they are utilized in dietary supplements and herbal remedies due to their therapeutic properties.

7. Animal Feed – To support growth, health, and productivity, animal feed formulations for livestock, poultry, and aquaculture contain vegetable oils as they offer essential fatty acids, energy, and fat-soluble vitamins.

8. Non-Food Consumer Products – Many consumer goods that are not food items, like candles, soaps, detergents, and bio-based cleaning supplies contain vegetable oils.

What is the future price of vegetable oil?

The world’s continuous usage of vegetable oil and the rate of economic growth have a significant impact on its price, which in turn affects demand prospects. By influencing production volumes and costs, technological advancements and economic conditions affect the amount of vegetable oil available.

Overall, the market for vegetable oil is expected to grow by USD 4.46 billion in 2030, with a compound annual growth rate (CAGR) of 9.30% between 2022 and 2028. Hence, the price of vegetable oil in 2028 will be $1.88 to $3.85 per kilogram.

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