Levy impact: CIMB Research says the levy has led to concerns that Malaysian refiners would again be disadvantaged as they do not enjoy the same margin advantage of US30 per tonne since the export tax for both local CPO and processed palm products is currently zero.
PETALING JAYA: Local palm oil refiners are bracing to retain their refining margins in the coming months as their competitive advantage is expected to be affected by the new palm oil levy imposed by Indonesia in July.
CIMB Research said in its latest report that Indonesian refiners were regaining margin advantage as the new export levy had lowered the domestic crude palm oil (CPO) price by US$30 to US$50 per tonne, helping to improve the processing margins of downstream processors in the republic.
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