Thailand restricts palm oil exports amid rising biodiesel demand

Thailand has moved to restrict palm oil exports as domestic demand for biodiesel surges, a trend closely linked to the ongoing conflict in West Asia.
According to the Ministry of Commerce, the decision is designed to safeguard national supply and stabilise prices as consumption of biodiesel blends increases across the country.
Officials explained that the geopolitical tensions in West Asia have pushed global energy markets into a period of volatility, prompting Thailand to rely more heavily on biodiesel as part of its energy mix.
This shift has driven up the need for crude palm oil, a key ingredient in biodiesel production. By limiting exports, the government aims to ensure that local refiners and consumers are not exposed to shortages or sudden price spikes.
The ministry also noted that maintaining adequate reserves is essential for supporting Thailand’s energy security strategy. While the export restrictions may affect international buyers, the government emphasised that domestic stability must take priority during periods of heightened global uncertainty.
Industry observers suggest that the move could influence regional palm oil markets, particularly if other major producers adopt similar measures. For now, Thailand’s focus remains firmly on balancing its renewable energy ambitions with the need to protect consumers and producers at home.