- Malaysia cut its unrefined palm oil export duty to 9.5% for January 2026 from 10% in December, responding to weaker global prices.
- The reference price for palm oil fell to 3,946.17 ringgit/tonne from 4,206.38 ringgit, reflecting about a 6% month‑on‑month decline.
- Impact on Black Sea sunflower oil is mostly neutral, but cheaper Malaysian palm oil may increase competitive pressure in key Asian and Middle Eastern markets.
Malaysia Cuts Palm Oil Export Duty
The Malaysian Palm Oil Board (MPOB) has reduced the export duty on unrefined palm oil to 9.5% for January 2026, down from 10% in December 2025. The move aligns with weakening palm oil prices and aims to support Malaysian export competitiveness in the global vegetable oil market.
The revision is based on a lower official reference price for crude palm oil, which has declined alongside futures prices on the Malaysian Exchange.
Palm Oil Price and Duty Structure
| Item | Period / Detail | Value |
|---|---|---|
| Export duty on unrefined palm oil | December 2025 | 10.0% |
| Export duty on unrefined palm oil | January 2026 | 9.5% |
| Reference price | December 2025 | 4,206.38 ringgit/tonne |
| Reference price | January 2026 | 3,946.17 ringgit/tonne |
| Palm oil futures (March delivery) | 18 December (Malaysian Exchange) | 3,968 ringgit/tonne |
| Sliding duty range | Export duty band | 3% – 10% |
| Lower duty trigger | Price band for 3% duty | 2,250 – 2,400 ringgit/tonne |
| Upper duty trigger | Price threshold for 10% duty | > 4,050 ringgit/tonne |
Malaysia operates a sliding scale export duty for palm oil, with rates between 3% and 10%. A minimum 3% duty applies when prices fall between 2,250 and 2,400 ringgit per tonne, while the 10% ceiling is triggered when prices exceed 4,050 ringgit per tonne. The current reference price near 3,950 ringgit/tonne places the duty just below its maximum level.
Market Impact and Black Sea Oilseeds
The direct impact of Malaysia’s duty cut on Black Sea sunflower oil markets is limited. However, lower export duties enhance the competitiveness of Malaysian palm oil across global vegetable oil flows, particularly into Asia and the Middle East where buyers can substitute between palm, sunflower, and other soft oils.
For Ukrainian and Russian sunflower oil exporters, this may translate into indirect downward price pressure if buyers push for discounts against cheaper palm oil alternatives. Traders should closely track any defensive pricing or changes in offer levels from Black Sea origins, especially for destination markets with high substitution potential.
Source: Market Data
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