Biofuel Market Sees Wild Price Fluctuations Amid Regulatory Changes

The biofuel market experienced significant fluctuations in Q2 2026 due to various factors. In May, US demand for Used Cooking Oil (UCO) increased as a result of amendments to the Renewable Fuels Standard policy, causing prices to rise to $1200/mt by mid-June.

Biodiesel prices opened Q2 trading at a discount to Low Sulphur Gasoil (LSG), but demand recovered in May and early June due to mandates in Germany and the Netherlands. The premium to LSG for FAME-10 rose above $630/mt for the first time since February.

HVO prices remained elevated in April, reaching a 3-year high of $3149.50/mt amid rising gasoil futures. However, prices fell by $162.50/mt in May and continued to decline in June due to losses in gasoil futures.