Asia
In the third quarter of 2025, biodiesel prices in Asia stayed firm as producers faced higher feedstock costs and limited supply. The Philippines’ decision to delay its planned biodiesel blend increase eased some short-term pressure, but high coconut oil prices kept production costs elevated.
Across the region, rising demand for sustainable fuels in countries like India and Indonesia supported prices. India’s ongoing shift toward higher ethanol and biodiesel use also added pressure on feedstock markets, especially for sugar and oilseed crops. However, weaker export demand from some regional buyers and limited new capacity kept trade volumes moderate. Overall, Asian biodiesel markets stayed tight, with prices showing a mild upward trend through the quarter.
Europe
In Europe, biodiesel and renewable diesel prices strengthened during Q3’25 as demand continued to grow faster than supply. The rollout of new RED III mandates and the early implementation of Sustainable Aviation Fuel (SAF) blending requirements increased overall biofuels consumption. Feedstock dynamics also played a key role; Europe’s shift away from palm and soybean oil toward waste-based sources like used cooking oil (UCO) and animal fats created additional cost pressure. Limited UCO availability, even with increased U.S. exports, supported higher prices. Although new renewable diesel capacity came online in Sweden and France, these additions were not enough to offset the region’s growing supply gap. As a result, biodiesel prices across northwest Europe and the Mediterranean stayed firm, with traders reporting tighter margins and increased competition for waste-based feedstocks.
North America
In North America, biodiesel prices were mixed in Q3’25, influenced by shifting U.S. policy and feedstock market changes. The proposed EPA rule to restrict renewable fuel credits (RINs) for imported or foreign feedstock-based biodiesel created uncertainty in the market. While the move aimed to support domestic producers, it also raised compliance costs and limited feedstock flexibility. Domestic tallow, soybean oil, and used cooking oil prices climbed as blenders prepared for potential regulatory impacts. Refiners faced higher input costs, which translated into modest price gains for biodiesel in several regions. However, market sentiment was cautious due to uncertainty around the final rule and its effect on future imports.