Diesel slump smashes palm oil’s biofuel goals

“The weakness of gasoil prices in relation to crude oil is a sign of the troubles of the petroleum refining industry, ” said James Fry, (file pic) chairman of LMC International. “A large palm oil-gas oil spread means that palm biodiesel has become a very expensive source of diesel fuel.”

KUALA LUMPUR: Palm oil is now facing an almost insurmountable challenge in its bid to replace fossil fuel as an energy source.

Gasoil, also known as diesel, has slumped more than 45% this year, making its price gap with palm oil the widest since 2011.