Cooking Oil Prices Rise Due Global Oil

RRI.CO.ID, Jakarta - World crude oil prices rose near $120 per barrel on Monday, 9 March 2026, though on Tuesday, 10 March 2026, Brent crude hovered at $93 per barrel. Along with this increase, palm oil (CPO) prices also surged to 4,570 Malaysian ringgit per ton, up from around 4,000 ringgit per ton on February 25.

The CPO price increase is mainly due to expectations that higher crude oil prices will spur demand for CPO in biodiesel production. This directly impacts products made from CPO, including cooking oil. Based on monitoring by PIHPS (Food Price Information Center) in North Sumatra, bulk cooking oil prices climbed about 250 rupiah per kilogram on Tuesday.

In North Sumatra province, bulk cooking oil prices increased from 19,200 to 19,450 rupiah per kilogram. Some markets saw increases of 500 and 1,500 rupiah per kilogram, such as Brayan Market in Medan and Aek Habil Market in Sibolga, while Petisah Market in Medan recorded an increase of about 500 rupiah per kilogram.

The rise in bulk cooking oil prices is expected to follow global CPO price trends, influenced by the Iran–US/Israel conflict. CPO prices reflect energy commodity fluctuations, such as crude oil. Demand for cooking oil is also increasing during Ramadan and leading up to Eid.

The steepest spike usually occurs just before Ramadan and the week leading to Eid. Current bulk cooking oil price hikes are influenced more by external factors, including export demand, while domestic production must still be met.

So far, cooking oil is the only essential commodity in Indonesia significantly affected by the Middle East conflict. Other food staples have not seen similar price impacts.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)