Cooking oil prices to rise as key producers cut supply

Kenyans should brace for increased edible oil prices as the landing cost for crude palm oil increases by 4% this week.

The crude palm edible oils landing cost has increased by at least Kshs. 10,000 per ton due to export ban on palm oil by Indonesia, one of the World’s leading producers on Sunday.

Already edible oil prices have more than doubled in the last 12 months which has been exacerbated by the Russian Ukraine conflict which started in mid-February.

The two Eastern European nations are the leading producers of sunflower oils in the World accounting for close to 30% of global total output.

Indonesia banned the export of crude palm oil over scarcity of the commodity brought about by increased demand and stifled production.

The ban has seen local cooking oil prices increase with a 10 liter of cooking oil retailing at an average of Kshs. 2,900 in most retail outlets, up from Kshs 1800 a year ago.

The prices are expected to increase even further in the next few days after the landed cost of crude palm oil increased last week.

This week edible oils processors are importing crude palm oil at Kshs. 218, 000 per ton up from Kshs. 208,000 last week.

A section of edible oil processors says the ban will in the long run affect local prices.

Soya prices have also soared in the last year due to high demand in Asia and the United States. Kenya imports soya beans from Malawi, Zambia, and Tanzania but the imports have since dwindled due to declining stocks in these countries.

China has been mopping up Soya beans from the region that has seen a kg of soya currently retail at Kshs. 120 up from Kshs. 90 in December last year.