🗓️ Tuesday, April 21, 2026
📍 World

🍳 War Hits the Dinner Table — Why Palm Oil Prices Are Rising

⚠️ War is no longer just affecting fuel prices — it’s starting to affect your food.

🌍 Palm oil, a key ingredient used in everyday products, is getting more expensive. Experts warn prices could rise by up to 20%, which may push food prices higher around the world.

🍳 Why palm oil matters

Palm oil is everywhere. It’s used in:

• 🍟 Cooking oil
• 🍜 Instant noodles
• 🍪 Snacks and biscuits
• 🧈 Margarine
• 🧴 Cosmetics and soaps
• ⛽ Biofuels (fuel made from plants)

🌴 Most of the world’s palm oil comes from Indonesia and Malaysia — about 85% of total supply.

⚠️ What’s causing prices to rise?

🛢️ 1. War is pushing up fuel prices

Rising tensions around key routes like the Strait of Hormuz have made oil more expensive.

⛽ When fuel prices rise, countries turn to alternatives like biofuels — many of which use palm oil.

👉 Palm oil is now being used more for fuel, not just food.

📦 2. Countries are stockpiling

Governments and companies are buying extra palm oil now, worried that supplies could be disrupted.

👉 This sudden demand makes prices rise faster.

🚢 3. Shipping is more expensive

War increases shipping costs, insurance costs, and trade risks.

📈 Some of these costs have jumped up to 50%.

👉 Moving palm oil around the world now costs more.

🌾 4. Farming is getting more expensive

Fertiliser prices are rising due to supply disruptions.

Farmers may use less fertiliser or delay planting.

👉 This leads to lower production later.

⛽ 5. More palm oil is going into fuel

Indonesia plans to increase biodiesel use (B50 policy).

👉 About 1.5 million tonnes of palm oil could be diverted from food to fuel.

🌴 6. Trees are getting old

In Malaysia, many palm trees are ageing and producing less oil.

👉 This slows down supply growth.

🌦️ 7. Weather could make it worse

There’s a 50–60% chance of El Niño later in 2026.

🔥 El Niño can cause hotter weather, drier conditions, and lower crop yields.

📊 What we’re seeing now

• 📈 Global food prices are rising
• 🛢️ Vegetable oil prices are up 13.2% from last year
• ⚠️ Palm oil prices are expected to rise further

🌏 Some countries, like Thailand, are already limiting exports to protect local supply.

🧠 Why this matters

This isn’t just about one ingredient.

🔗 Palm oil connects food, energy, and global trade.

⚠️ When all three are affected at the same time, prices can rise quickly — and stay high.

🚨 The bottom line

War → ⛽ higher fuel prices → 🌴 more demand for biofuel → 🍳 less palm oil for food → 💸 higher food prices

⚠️ Palm oil is one of the first signs, but it may not be the last.