The Malaysian Palm Oil Board (MPOB) is encouraging industry players and the public to actively participate in the trading of used cooking oil (UCO) to support the nation’s circular economy initiatives.
In a statement, MPOB announced the launch of a domestic UCO price reference portal, which is accessible free of charge to all stakeholders. The platform aims to improve transaction transparency and facilitate the buying and selling of used cooking oil in Malaysia.
The initiative, introduced through the Ministry of Plantation and Commodities, is part of ongoing efforts to enhance market transparency, strengthen price discovery, and reduce uncertainty across the oil palm industry value chain.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the reference price provides a clearer and more reliable benchmark, helping to develop a transparent and inclusive UCO supply chain. He added that the move also supports the government’s push for a circular economy, positioning used cooking oil as a valuable raw material.
UCO is increasingly in demand globally as a feedstock for sustainable energy products such as biodiesel and sustainable aviation fuel (SAF), as well as various oleochemical products. Demand for SAF is expected to rise significantly as the aviation industry targets net-zero carbon emissions by 2050, with projections showing demand could grow three to five times by 2030.
MPOB noted that Malaysia has strong potential in UCO supply, given the widespread use of palm-based cooking oil in households and the food service sector, including catering businesses and fried food vendors.
