The Used Cooking Oil Price Trend in the second quarter of 2026 showed how changes in supply, demand, collection costs, and renewable fuel production can influence prices in the global market. 

From April to June 2026, Used Cooking Oil (UCO) prices increased across all five monitored export markets before experiencing a sharp correction in June. India and Malaysia recorded the strongest quarterly gains of around 13%, followed by Singapore at 11%, Vietnam at 7%, and Peru at 6%. 

This movement highlights an important market pattern: prices can rise when buyers compete for limited supplies, but they can also fall quickly when buyers reduce purchases after a period of strong growth.

Used Cooking Oil has become an important raw material for biodiesel and other renewable fuel applications. As more fuel producers look for alternative feedstocks, demand for collected cooking oil has increased. 

However, the supply of used oil depends on everyday cooking activities, collection networks, storage facilities, and transportation systems. These factors cannot always expand as quickly as demand. 

As a result, the Used Cooking Oil Price Index remained supported during the second quarter, even though the market experienced a significant correction toward the end of the period.

Overview of the Used Cooking Oil Market in Q2 2026

The second quarter of 2026 began with a firm market outlook. Buyers in the renewable fuel industry continued to look for used cooking oil, while collectors and exporters faced difficulties in increasing the volume of available material. Restaurants, hotels, food businesses, and other commercial kitchens generate used cooking oil regularly, but collecting and preparing it for export requires an organized supply chain.

When demand increases faster than collection volumes, exporters have fewer quantities available to offer buyers. This can encourage competition among traders and push export prices higher. That was the main pattern across the monitored markets during Q2 2026.

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The quarterly increase in prices ranged from approximately 6% to 13%. India and Malaysia recorded the highest gains, reflecting tight supply conditions and strong interest from biodiesel and renewable fuel buyers. Singapore also experienced a strong increase because of its role as a regional trading and aggregation hub.

However, June brought a clear change in market direction. After prices had risen during the preceding months, buyers began reducing procurement. This led to price declines of approximately 14% to 18% across all five markets. The correction showed that strong demand alone cannot keep prices rising indefinitely. Purchasing decisions, inventory levels, and buyers' willingness to accept higher prices also play an important role.

Used Cooking Oil Price Trend in India

India recorded one of the strongest performances in the global Used Cooking Oil market during Q2 2026. Export prices at FOB Nhava Sheva increased by approximately 13% over the quarter, making India one of the leading markets for price appreciation.

The main reason behind this increase was the gap between available collection volumes and export demand. Biodiesel and renewable fuel buyers continued to show interest in Indian used cooking oil, while collectors and aggregators struggled to increase supply at the same pace. When exporters have limited quantities available and buyers remain active, prices generally receive upward support.

Collection and transportation also play an important role in determining export prices. Used cooking oil must be gathered from different sources, handled properly, stored, and moved to export locations. Any difficulty in these activities can affect the quantity available for shipment and increase the cost of supplying the product.

During Q2 2026, these supply conditions helped FOB Nhava Sheva prices climb toward peak levels. Demand from buyers seeking renewable fuel feedstocks supported the market throughout the quarter.

However, June brought a sharp reversal. Used Cooking Oil Prices in India declined by approximately 18% as buyers reduced procurement after the earlier price increase. This was the largest monthly correction among the five monitored markets.

The Indian market therefore demonstrated two important trends. Limited supply and firm demand can support substantial price gains, but prices may also correct sharply when buyers become more cautious about purchasing at elevated levels.

Used Cooking Oil Price Trend in Vietnam

Vietnam recorded an increase of approximately 7% in export prices during Q2 2026. Although the gain was smaller than those seen in India and Malaysia, the market maintained a steady upward direction during the quarter.

FOB Haiphong prices benefited from consistent demand from renewable fuel buyers. At the same time, limited feedstock availability restricted the ability of processors and exporters to increase supply. Collection networks faced the challenge of keeping up with international purchasing requirements, which helped support prices.

One notable feature of Vietnam's market was its relatively gradual price movement during the quarter. Rather than experiencing the strongest quarterly increase, prices moved upward as demand remained firm and available supplies stayed limited.

This pattern illustrates how even moderate supply shortages can influence a market when buyers continue to purchase regularly. Exporters do not necessarily need to face an extreme shortage for prices to rise. A continuing difference between the quantity buyers want and the quantity suppliers can provide may be enough to create upward pressure.

In June 2026, however, prices at FOB Haiphong fell by approximately 14%. Buyers reduced procurement after the earlier gains, bringing the market into line with the wider global correction.

For Vietnam, future price direction will depend on the balance between collection capacity, export demand, and the purchasing plans of renewable fuel producers.

Used Cooking Oil Price Trend in Peru

Peru recorded the smallest quarterly increase among the five monitored markets, with FOB Callao export prices rising by approximately 6% in Q2 2026.

The market benefited from steady demand from biodiesel and renewable fuel buyers. However, logistical challenges affected the collection and aggregation of used cooking oil, limiting the amount of material available for export.

In practical terms, collecting used cooking oil is not simply a matter of gathering a waste product and selling it. Suppliers must organize collection points, transport material from different locations, manage storage, and prepare suitable quantities for shipment. When these operations become difficult or costly, the supply chain may struggle to respond quickly to stronger demand.

Peru experienced this kind of supply limitation during the quarter. Prices increased gradually as the market adjusted to the relationship between available feedstock and export requirements.

The relatively modest quarterly gain also shows that price movements can differ from one country to another, even when the same broad demand factors influence the global market.

In June 2026, Used Cooking Oil Prices in Peru declined by approximately 14%. The decrease followed the earlier upward movement as buyers scaled back their purchasing activity.

Going forward, improvements in collection efficiency and logistics could help Peruvian suppliers respond more effectively to demand. However, the effect on prices will also depend on international competition and the volume of feedstock available from other exporting countries.

Used Cooking Oil Price Trend in Malaysia

Malaysia was one of the strongest-performing markets in Q2 2026, recording an increase of approximately 13% in FOB Port Kelang export prices. This matched India's quarterly gain and placed both markets at the top of the monitored group.

Firm demand from renewable fuel buyers supported Malaysia's market, while limited collection volumes restricted available supply. Regional biodiesel requirements also helped maintain interest in used cooking oil as a renewable feedstock.

When several buyers compete for a limited quantity of material, suppliers may receive stronger offers. This can push prices higher, particularly when exporters cannot quickly increase collection volumes. Malaysia experienced these conditions during the second quarter, with prices climbing toward peak levels.

The market's performance also highlights the importance of regional trade. Buyers may compare supplies from several countries before deciding where to purchase. If available quantities are limited in one location, demand can shift toward another, increasing competition for the remaining supply.

Nevertheless, the upward movement did not continue throughout the quarter. In June 2026, FOB Port Kelang prices declined by approximately 15% as buyers reduced procurement following the earlier increase.

Malaysia's experience shows that even a market supported by firm renewable fuel demand can experience a substantial correction. For exporters and traders, monitoring actual buying activity is therefore just as important as tracking long-term demand expectations.

Used Cooking Oil Price Trend in Singapore

Singapore recorded an increase of approximately 11% in Q2 2026, making it the second-strongest market after India and Malaysia in terms of quarterly price growth.

Singapore plays an important role in regional trading and aggregation. Its position connects suppliers, traders, and buyers operating across different markets. This can make local export prices sensitive to changes in regional supply availability and international demand.

During Q2 2026, renewable fuel buyers continued to seek used cooking oil, while competition for available feedstock remained firm. Limited collection volumes and demand from different buyers supported a steady rise in FOB Singapore prices.

A trading hub can respond quickly to changes in market sentiment because it connects participants from multiple locations. When international buyers become more active, competition for available material may increase. Conversely, when purchasing activity slows, the impact can also appear quickly in export valuations.

This helps explain why Singapore remained firmly supported during the quarter but still experienced a significant correction in June.

Used Cooking Oil Prices in Singapore fell by approximately 16% during June 2026 as buyers reduced procurement after the earlier rise.

The market's performance underlines the importance of monitoring regional trade flows, collection availability, and buyer inventories when assessing price movements in a major aggregation hub.

Used Cooking Oil Price Chart: What the Q2 2026 Numbers Show

The Used Cooking Oil Price Chart for Q2 2026 can be understood by comparing the quarterly gains and the June corrections across all five markets.

The figures reveal three important points.

First, India and Malaysia experienced the strongest quarterly increases. Both markets recorded gains of approximately 13%, indicating that supply limitations and firm buyer interest created substantial upward pressure.

Second, Singapore also recorded a strong increase of approximately 11%. Its position as a regional trading hub helped it reflect wider changes in feedstock demand and availability.

Third, June brought a broad correction across every monitored market. India's decline of approximately 18% was the largest, while Vietnam and Peru recorded decreases of approximately 14%.

The chart therefore highlights the difference between a quarterly trend and a monthly movement. Prices can rise over a three-month period and still experience a sharp fall in the final month. For buyers and sellers, looking at both time frames provides a more complete understanding of the market.

What Is Driving Used Cooking Oil Prices?

Several factors help explain the movement in Used Cooking Oil Prices during Q2 2026.

1. Demand from biodiesel and renewable fuel producers

One of the most important factors is demand from the renewable fuel sector. Biodiesel producers use suitable used cooking oil as a feedstock, while some sustainable aviation fuel producers also seek it as a raw material.

When these buyers increase procurement, competition for available supplies can become stronger. This was a major source of price support across the monitored export markets during Q2 2026.

2. Limited collection volumes

Used cooking oil is generated through everyday food preparation, so its supply depends on the amount that can be collected from restaurants, hotels, commercial kitchens, and other sources.

Even if demand increases quickly, collection networks cannot always expand at the same pace. Limited collection volumes were an important factor behind the quarterly price increases across all five markets.

3. Collection, handling, and transportation costs

Before used cooking oil reaches an export market, it must be collected, stored, handled, and transported. These activities require workers, equipment, fuel, and organized logistics.

When operating costs increase, suppliers may need higher selling prices to maintain their margins. Difficulties in moving material from collection points to export terminals can also reduce the quantity available for shipment.

4. International energy market conditions

Energy market uncertainty can influence transportation expenses, fuel costs, and demand for alternative energy sources. During Q1 2026, geopolitical uncertainty surrounding the USA-Israel versus Iran conflict was identified as one of the factors contributing to higher energy and supply-chain costs.

Such conditions can influence the broader market, although their actual effect on used cooking oil prices depends on the strength of demand, available supply, and changes in operating expenses.

5. Changes in buyer procurement

The June correction showed that purchasing decisions are a major part of price formation. After prices increased during the quarter, buyers reduced procurement, contributing to declines of 14% to 18%.

This suggests that buyers may become more cautious when prices rise quickly. They may delay purchases, use existing inventories, or wait for more favorable offers. When several buyers take similar decisions, prices can fall even if the long-term demand outlook remains positive.

Used Cooking Oil Price Index: Understanding the Market Direction

The Used Cooking Oil Price Index provides a useful way to understand the overall direction of the market across different locations and periods.

During Q2 2026, the index remained supported by steady demand from biodiesel and renewable fuel industries. The quarterly increases across India, Vietnam, Peru, Malaysia, and Singapore showed that the upward pressure was not limited to one country.

However, a market index should not be interpreted as proof that every location has the same price or follows the same movement. Each export market has its own collection network, operating costs, trading conditions, and supply limitations.

India and Malaysia recorded the strongest quarterly increases, while Peru experienced the smallest gain. Singapore benefited from regional trading activity, and Vietnam recorded a more moderate increase. These differences demonstrate why country-level information is important when interpreting the broader index.

The June correction also shows that an index can remain supported over a quarter while individual monthly movements become negative. A useful assessment should therefore consider the quarterly direction alongside recent changes in purchasing activity and supply availability.

Used Cooking Oil Price Forecast: What Could Happen Next?

The Used Cooking Oil Price Forecast depends on how supply and demand develop after the second-quarter correction. The available Q2 2026 figures show historical market movements, but they do not establish a guaranteed price direction for the following months.

One possible scenario is that prices stabilize if buyers return to the market and collection volumes remain limited. In this situation, continued demand from biodiesel and renewable fuel producers could help support export valuations.

Another possibility is that prices remain under pressure if buyers continue to reduce procurement. Following the sharp increases recorded during Q2, some buyers may remain cautious about purchasing at elevated levels. If this behavior continues, exporters could face greater pressure to adjust their offers.

A third possibility is that prices move differently across individual markets. Countries with stronger collection networks may be better able to increase export supply, while markets facing logistical difficulties could remain more constrained. As a result, the next price movement may not be uniform across all export locations.

Several indicators will be useful when evaluating the Used Cooking Oil Price Forecast:

• Collection volumes: Higher collection rates could improve supply availability and reduce pressure on prices.
• Renewable fuel demand: Stronger procurement from biodiesel and sustainable aviation fuel producers could support prices.
• Transportation and handling expenses: Changes in fuel and logistics costs may affect exporters' selling prices.
• Buyer inventories: High inventory levels could reduce immediate purchasing requirements, while lower stocks may encourage renewed procurement.
• Export competition: Changes in the availability of feedstock across exporting countries could influence regional price differences.

The most practical approach is to monitor these indicators together rather than relying on a single factor. Strong renewable fuel demand may support prices, but increased collection volumes or weaker procurement could offset that effect.

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About Price Watch™

Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. 

The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.

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