Thailand will impose tighter controls on crude palm oil exports starting today, requiring exporters to secure prior approval from authorities, The Star reported Tuesday, citing an order published in the Royal Gazette.
The measure, which will be in place for one year, will ensure sufficient domestic supply amid rising energy demand. The Ministry of Commerce said the decision follows an increase in global oil prices driven by the ongoing Middle East conflict, reportedly.
Higher fuel prices are expected to lead to an increase in biodiesel blending in diesel, boosting demand for palm oil. At the same time, stronger overseas demand for Thai crude palm oil has added pressure on local supply.
Under the new rules, export permits must detail shipment volumes and are valid for a single transaction, the news outlet said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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