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Biodiesel Price Trend Analysis 2026: Market Insights, Historical Prices, Latest News, Price Drivers & Supply Demand Analysis
Written ByPragati Agarwal
Biodiesel Latest Development
US Biodiesel RIN Output Rises Year-to-Date
US EPA data shows September biodiesel RIN generation slipped slightly month-on-month, but year-to-date D4 biodiesel credits reached 1.65 billion, up nearly 19% from the same 2025 period. The continued expansion of domestic biodiesel production supports a healthy compliance supply outlook, keeping downward pressure on credit prices.
Biodiesel Price Trend Q3 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Biodiesel | USA | FOB | USD 5.90/Gallon | August 2026 |
| Biodiesel | Saudi Arabia | CIF | USD 5.71/Gallon | August 2026 |
| Biodiesel | Germany | CIF | USD 5.77/Gallon | August 2026 |
| Biodiesel | China | FOB | USD 5.40/Gallon | August 2026 |
| Biodiesel | Canada | FOB | USD 5.97/Gallon | August 2026 |
| Biodiesel | USA | FOB | USD 5.84/Gallon | July 2026 |
| Biodiesel | Saudi Arabia | CIF | USD 5.66/Gallon | July 2026 |
| Biodiesel | Germany | CIF | USD 5.71/Gallon | July 2026 |
| Biodiesel | China | FOB | USD 5.31/Gallon | July 2026 |
| Biodiesel | Canada | FOB | USD 5.94/Gallon | July 2026 |
Stay updated with the latest Biodiesel prices, historical data, and tailored regional analysis
Biodiesel Price Trend Q2 2026
- Biodiesel prices strengthened across Q2 2026, supported by tight fossil diesel markets, policy-led blending demand, and higher replacement value in regional fuel pools globally.
- Feedstock pressure remained firm as palm oil, rapeseed oil, and soybean oil costs shaped production economics across Asia, Europe, and North America markets.
- Downstream demand improved through mandated blending, road-fuel substitution, and strong biodiesel credit support, while physical consumption stayed close to available output in markets.
Asia
In China, the prices of Biodiesel were ~RMB 34.21/Gallon in April and ~RMB 35.39/Gallon in May, showing a ~3.5% increase. Similarly, in Saudi Arabia, the prices of Biodiesel were ~SAR 19.10/Gallon in April and ~SAR 19.50/Gallon in the following month, showing a ~2.1% increase. Asian biodiesel prices rose as fossil diesel tightness improved the substitution value of biodiesel. Indonesia’s planned move from B40 to B50 was the strongest regional signal, as higher palm oil methyl ester use would reduce diesel import needs and lift domestic biodiesel absorption. Palm oil remained the key feedstock driver, and stronger biodiesel blending meant more palm-based feedstock was pulled into fuel use. Saudi Arabia also saw support from tight refined-fuel markets after crude and refinery disruptions reduced product comfort.
Europe
In Germany, the prices of Biodiesel were ~EUR 4.31/Gallon in April and ~EUR 4.46/Gallon in May, showing a ~3.4% increase. European biodiesel gained because road-fuel blending demand strengthened while rapeseed oil costs kept production economics firm. Tight rapeseed supply and poor first-generation biodiesel margins supported FAME and RME values. Crop-cap changes also shifted part of the demand back toward crop-based biodiesel, giving producers stronger selling power. The market was not only feedstock-led; buyers also needed biodiesel to meet blending requirements as fossil diesel and gasoil remained elevated.
North America
In the United States, the prices of Biodiesel were ~USD 4.89/Gallon in April and ~USD 5.50/Gallon in the subsequent month, showing a ~12.5% increase. The sharper rise came from policy-backed demand, firm soybean oil costs, and stronger blending economics. The biomass-based diesel requirement for 2026 was set at 9.07 billion RINs. Production and consumption levels remained closely aligned over the period, indicating a balanced supply-demand situation.
Analyst Insight
According to Procurement Resource, in the near term, biodiesel prices may stay supported by mandates and high replacement value against diesel. Feedstock costs will remain the main risk for regional price direction.
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- Escalating Middle East conflict injected a sharp risk premium into crude and gasoil markets, mechanically compressing biodiesel premiums globally rather than signaling any fundamental demand shift.
- Feedstock prices, including used cooking oil and soybean-derived inputs, remain broadly stable, but the surge in fossil fuel benchmarks is reshaping blending economics across all major markets.
- Downstream demand response remains structurally limited, with blend walls capping Europe, political deadlock stalling Brazil, and U.S. biofuel expansion dependent on unresolved congressional action.
Asia
In the Asian region, the biodiesel prices witnessed a fluctuating trajectory in the first quarter of 2026. Asian markets moved into a wait-and-see mode as traders across China and India paused activity amid geopolitical uncertainty. Cooking oil prices held steady for over a month, reflecting a feedstock market yet to react to the broader energy shock. Chinese traders described conditions as chaotic, with most unwilling to take new positions until the crude oil direction becomes clearer. India faces indirect risk as a major consumer of palm and waste-based feedstocks, where any sustained crude rally could push input costs higher and squeeze domestic production margins.
Europe
In the European markets, the biodiesel prices witnessed an oscillating trajectory in the first quarter. European biodiesel premiums fell to their lowest in roughly two years as surging gasoil dragged differentials sharply lower across all categories. Crop-based biodiesel traded below outright gasoil prices for the first time, an unprecedented inversion that should theoretically stimulate blending demand but cannot, as EU regulations cap biodiesel at seven percent of road fuel. Most buyers are already blending at the maximum permissible rate, leaving no room to absorb additional volumes even at deeply discounted prices.
North America
In Q1’26, the biodiesel price curve displayed mixed trends during the quarter. Brazil saw a rare inversion where domestically produced biodiesel became cheaper than imported diesel, strengthening the farm lobby's push to urgently raise the mandatory blend ratio. The opposing fuel import lobby argues that higher blends would raise costs for end consumers and is instead backing proposals to allow limited biodiesel imports. In the United States, the biofuels industry is using the price shock to press Congress for permanent year-round access to higher ethanol blends, citing ample domestic supply and a consistent retail price advantage over standard fuel.
About Biodiesel
Biodiesel is a sustainable, biodegradable fuel that can be produced domestically using vegetable oils, animal fats, or recycled restaurant grease. In its pure, unbleached form, it is frequently referred to as B100 or plain biodiesel. Biodiesel, like petroleum diesel, is used to power compression-ignition engines.
Biodiesel Product Detail
Industrial Uses
Transportation, Energy Generation, Heating, Lubrication
Supplier Database
Diester Industries, Neste Oil, ADM, Infinita Renovables, Biopetrol, Cargill, Ital Green Oil
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Biodiesel Production Processes
- Biodiesel Production from Fat or Vegetable Oil via Transesterification
Transesterification is a chemical process that converts triglycerides (fats) found in oils (Feedstocks) into useable biodiesel. Biodiesel produced through the transesterification process has a substantially lower viscosity than petroleum diesel, making it suitable for use in diesel engines.
Frequently Asked Questions
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess biodiesel prices and trends. Price evaluations incorporate supply-demand dynamics, feedstock movements, trade flows, and value chain analysis, supported by continuous market monitoring to ensure accurate and reliable insights.
Biodiesel can be blended with petroleum diesel and used in many existing diesel engines, depending on blend level and equipment approval. It offers renewable content and lower lifecycle greenhouse gas emissions than fossil diesel, especially when produced from waste oils or fats. Costs depend on feedstock prices, policy credits, and blending economics, so biodiesel can be more attractive when mandates and incentives support use.
Biodiesel demand is mainly driven by road transport, commercial trucking, agriculture, mining, construction equipment, and public fleets. These sectors use diesel engines and can blend biodiesel into existing fuel systems. Demand is also supported by fuel distributors and obligated parties that need renewable fuel credits to meet blending mandates, making biodiesel important for compliance and lower-carbon fuel strategies.
A major policy change was the U.S. Environmental Protection Agency’s final Renewable Fuel Standard rule for 2026 and 2027. The RFS requires set renewable fuel volumes in the U.S. transport fuel pool and includes biomass-based diesel obligations. The 2026 rule also reallocates 70% of small refinery exemptions granted for 2023–2025, supporting stronger biodiesel blending demand.
Biodiesel is produced from vegetable oils, animal fats, used cooking oil, and other lipid-based feedstocks. These raw materials are collected, pretreated, and processed mainly through transesterification, where oils react with alcohol to form fatty acid methyl esters and glycerin. The value chain includes farming or waste collection, oil extraction, refining, biodiesel conversion, blending, fuel distribution, and use in diesel engines.
In March 2026, Be8 took over operations of a biodiesel industrial unit in Alto Araguaia, Mato Grosso, Brazil, after completing regulatory approval from CADE, Brazil’s Administrative Council for Economic Defense. The acquisition added an operating biodiesel plant to Be8’s production network and strengthened its position in Brazil’s renewable fuels market, where biodiesel blending demand remains supported by national fuel policy.
Major biodiesel market participants include Archer Daniels Midland Company, Wilmar International, Neste, Chevron Renewable Energy Group, and Cargill. These companies have strong positions across feedstock sourcing, refining, renewable fuel production, trading, and distribution. Their scale helps them manage raw material volatility, comply with blending programs, and supply transport fuel markets in North America, Europe, and Asia.
Rising soybean oil, rapeseed oil, and other feedstock costs were the primary drivers of biodiesel pricing in Q1 2026. In Europe, winter outages and delays linked to the Strait of Hormuz tightened feedstock flows and reduced prompt availability. Rising vegetable oil and energy costs lifted production expenses, while buyers drew down inventories. Mandatory blending still supported baseline consumption despite softer spot demand.
The biodiesel outlook for 2026 remains positive, supported by higher blending obligations, expanding renewable diesel capacity, and continued demand for soybean oil, used cooking oil, animal fats, and vegetable oils. Market stability is expected to improve as feedstock availability becomes clearer and policy requirements support consumption. Demand may remain strongest where governments continue backing renewable diesel and biodiesel blending programs.
During Q1 2026, biodiesel prices showed an upward trend. In the USA, prices showed an 18.89% increase from January to March, while in Canada, they witnessed an 18.90% increase. The rise was supported by higher feedstock costs, firm blending demand, and expectations of higher U.S. Renewable Fuel Standard (RFS) blending obligations.
Our Price Analysis Methodology
About the Author
Pragati Agarwal
Senior Business Insights Analyst
Delivering price trend analysis and procurement market insights at Procurement Resource, with expertise in identifying commodity patterns, supporting purchasing strategies, and improving cost efficiency through actionable market intelligence.
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