High crude oil prices may push up edible oil rates
veg oil producers' body
This story was originally published at 18:37 IST on 2 March 2026
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NEW DELHI – Rising crude oil prices are likely to push up domestic cooking oil prices as the latter is used in making biofuels, the Indian Vegetable Oil Producers' Association said. Given India's dependence on imports to meet over 60% of its domestic edible oil demand, supply disruptions in West Asia will have a direct impact on local edible oil prices.
At 1626 IST, the most-active April West Texas Intermediate Crude contract on the NYMEX was up 8.4% at $72.04 per barrel, after hitting an over eight-month high of $75.33 earlier in the day. Crude oil prices jumped after Israel and the US launched joint military strikes on Iran over the weekend, and Tehran retaliated. Prices also rose amid fears of supply disruptions following the closure of the Strait of Hormuz.
"Rising crude oil prices not only increase logistics cost, but the linkage between edible and global biofuel markets will have a somewhat inflationary impact on global prices, and it can also increase the insurance risks of the vessels," the association said in a note. Higher crude oil prices increase the diversion of edible oil for biofuel production.
In the edible oil basket, sunflower oil and soyoil are likely to be most affected by potential supply disruptions in the Red Sea and Black Sea. "In the near term, we expect volatility to persist both in oil and also on dollar/INR prices with the central focus on these geopolitical wars," it added. End
US$1 = INR 91.47
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Afra Abubacker
Edited by Saji George Titus
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