---
title: "Palm oil and crude oil prices rise, Bumitama Agri: Cost pressure also aids business growth | Lianhe Zaobao"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283579087.md"
description: "The Iran war has driven up energy prices, putting cost pressure on palm oil producer Bumitama Agri, but the rise in oil prices has also boosted its business growth. The company stated that the increase in fuel and fertilizer prices has a direct impact on costs, averaging 10% of total production costs, but remains within a controllable range. Palm oil prices are directly related to energy prices, with rising fossil fuel prices driving an increase in biodiesel production, which in turn raises palm oil prices. It is expected that by 2025, about 25% of global palm oil production will be used for energy-related purposes"
datetime: "2026-04-22T01:22:19.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283579087.md)
  - [en](https://longbridge.com/en/news/283579087.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283579087.md)
---

# Palm oil and crude oil prices rise, Bumitama Agri: Cost pressure also aids business growth | Lianhe Zaobao

The Iran war has driven up energy prices, putting cost pressure on palm oil producer Bumitama Agri, but the rise in oil prices is also beneficial for the company's business.

Bumitama Agri stated in a written response to shareholder inquiries before the market opened on Wednesday (April 22) that the increase in fuel and fertilizer prices has indeed had a direct impact on the group's costs, with these two costs historically averaging about 10% of total production costs, but still within a controllable range.

The company pointed out that palm oil prices are directly related to energy prices, as palm oil is a primary raw material for biofuel production. Rising fossil fuel prices typically drive an increase in biodiesel production, especially in major producing countries like Indonesia and the United States, thereby pushing up palm oil prices.

In addition, demand in the energy sector has significantly increased in recent years. It is estimated that by 2025, about 25% of global palm oil production will be used for energy-related purposes, compared to about 15% a decade ago.

#### Further Reading

Middle East conflict drives up crude palm oil prices, related concept stocks benefit greatly Palm oil-related stocks benefit from price increases, but stock performance has varied this year

Overall, although rising energy prices bring some cost pressure, the correlation between the energy market and palm oil demand has, to some extent, offset the adverse effects and may, in some cases, provide positive support for the group's overall performance.

Bumitama Agri's stock price rose 2.12% to 1.93 yuan on Tuesday (21st)

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