Global Vegetable Oil Prices Hit Highest Level Since July 2022

The Food and Agriculture Organisation's (FAO) Vegetable Oil Price Index posted a notable increase in August, climbing to 169.1 points, up 1.4% from the previous month. The rise was driven by higher prices for palm, sunflower and rapeseed oils, even as the broader world food price index remained relatively stable.

Global Food Prices Hold Steady

According to the FAO report, the Food Price Index (FFPI) averaged 130.1 points in August 2025, virtually unchanged from July. Increases in the meat, sugar and vegetable oil sub-indices offset declines in the cereal and dairy price indices.

Overall, the index remains:

• 6.9% higher than in August 2024.
• 18.8% below its all-time peak reached in March 2022.

Behind the Rise in Vegetable Oil Prices

The main drivers behind the increase in the Vegetable Oil Price Index were as follows:

• Palm oil: International prices rose for a third consecutive month, supported by strong global import demand as well as Indonesia's plans to raise its biodiesel blending mandate in 2026.
• Sunflower and rapeseed oils: Global prices increased on tighter supplies from the Black Sea region and Europe.
• Soybean oil: By contrast, prices edged lower, reflecting expectations of ample global soybean supplies for the 2025/2026 season.

Source: Food and Agriculture Organisation of the United Nations (FAO)