Bulk Vegetable Oil Prices

Biofuels are fuels that are derived from the oils present in vegetable matter, like soybean oil, corn oil and palm oil. The public has become increasingly aware of biofuels because they have been touted as a sustainable replacement for the rapidly dwindling supply of fossil fuels, like petroleum oil and coal. Biofuel in the form of vegetable oil has been contemplated especially in the use of cars to replace gasoline.

However, consumers who want to make the transition from fossil fuel to biofuel find obtaining an adequate supply of biofuel, like corn oil, to run their cars prohibitive. The bulk price for vegetable oils is still much more expensive than fossil fuel and makes it hard for consumers to make the leap to biofuel. Some resort to purchasing used oil, like oils used in commercial food production at fast food establishments, but many report that the odors such oils make as they burn ensure that driving is a smelly affair. In towns where there are actual biofuel stations for consumer purchase, like those in Seattle, consumers were appalled to see biofuel hit upwards of $6.00 a gallon when fossil fuel gasoline was still hovering around $4.00 a gallon.

For those who want to use biofuel in areas where there is no consumer-level biofuel station, obtaining enough oil to run a car can be very difficult, as well as expensive. All but those who are committed to alternative fuels may find biofuel as it costs now far too expensive to use, even when they find the lowest bulk retail prices for vegetable oil. Corporations looking to make the transition to biofuel may find it economical in bulk, as some crude vegetable oil is still lower in cost per barrel price than traditional fossil fuel despite low supply, but finding the amount that some industries may need to function efficiently can be difficult.

However, there are trends in international vegetable oil production that may lower bulk vegetable oil prices for the consumer, as well as ensure a consistent supply. Demand for biofuels has initially outstripped the supply capacity, driving up prices and limiting availability. As the global producers of vegetable oil ramp up production, there will be more competitors in vegetable oil production and prices will stabilize.

For example, palm oil, which comes from the oil palm trees native to the wetlands in Western Africa, was widely used as a food additive for years. It also has uses in household cleaners and soaps, as well as cosmetics. However, when the biofuel demands began to go mainstream, palm oil farmers found themselves with an increased market for their palm oil. As the demand increased, many West African nations created incentives for citizens to farm palm oil. In one comparison, crude palm oil is generally 30% less per barrel than traditional crude oil. As more and more farmers enter palm oil cultivation, that price will go lower as supply goes up, creating a cheaper and more sustainable and eco-friendly form of biofuel for the consumer.