Thailand restricts palm oil exports amid rising biodiesel demand

Thailand is introducing new restrictions on crude palm oil exports to balance domestic consumption with growing energy demand. The measure will take effect on April 7 and remain in place for one year.

Under the new rules, exports of crude palm oil will only be allowed with prior approval from government authorities. The policy aims to ensure sufficient domestic supply of this strategic commodity.

The tighter regulation comes as demand for biodiesel increases, driven by higher global oil prices. These price pressures are partly linked to geopolitical tensions in the Middle East, which continue to impact global energy markets.

According to Thailand’s Ministry of Commerce, the energy sector is preparing to raise the share of biodiesel in diesel fuel. At the same time, rising international demand for Thai palm oil is adding further strain on domestic supplies.

Thailand, the world’s third-largest producer of palm oil, is expected to produce around 3.94 million tonnes in 2026. Authorities are seeking to secure adequate supply for households, industry, and the energy sector amid ongoing global market uncertainty.

Tags: palm oil, restrictions, export, Thailand