Cooking oil prices have fluctuated dramatically over the last four years,. It has resulted in a fresh financial strain for both domestic households and commercial businesses. According to Freshways Click and Collect, the price of cooking oil rose by 23% in just one year in 2023. But now we’re into a new year and with fresh prospects with regards to food and oil prices. So what does 2025 have in store for us when it comes to the price of cooking oil? Let’s investigate this further:
Will oil prices drop in 2025?
With a few years of rising cooking oil prices, it’s not surprising that people are hoping for a price drop. So what does 2025 have in store for us by way of cooking oil prices? According to deVere, 2025 looks like it’s going to be the year of high supply and sluggish demand.
The Guardian reported, in Autumn last year, that food and petrol prices will begin to fall in 2025, offering some hope for consumers that the price of many food products will reduce, including the price tag on a bottle of cooking oil. The same source also predicts that, from 2024 to 2026, global commodity prices will reduce by as much as 10%. Although the prices thereafter are set to stagnate.
However, despite all of these predictions, cooking oil prices still look uncertain. The cooking oil industry is still predicting turbulent times when it comes to pricing. This is because production levels are dropping and demand remains steady.
In fact, The Grocer reports that extreme wet weather is to blame for production falls, meaning that the environment and climate change may have more of an impact on cooking oil production levels than otherwise thought. This is a trend that isn’t set to cease, with a very cold and wet start to 2025 already.
Oil prices to remain high as production settles
Despite there being reports that cooking oil prices will go down in the coming years, there are still whispers in the industry that the price of cooking oil will either continue to rise or remain stagnant as production wavers, according to oilprice.com.
In October 2024, the BBC reported that just under two million tonnes of cooking oil is expected to be produced over the course of the next year, which is around 23% below the average production levels when compared against the last four years.
So while cooking oil prices are expected to drop, it might not fall as much as was initially hoped for. According to the Energy & Climate Intelligence Unit, cooking oil prices had risen by 107% from 2022 to spring 2024, mainly due to a considerable drop in cooking oil production in the UK.
The same source states that extreme weather in the winter and early spring has a detrimental effect on summer crops. If we look at the production rate from 2015 and compare it to the production rate in 2024, the reduction was as much as 54% lower in recent years, claims the same source.
However, Fadaro Foods states that there is expected to be a cooking oil supply shortage in 2025, with exports slowing and global supplies tightening. As such, there’s no realistic expectation that prices of cooking oil will go down any time soon. But suppliers are still wanting to be competitive to retain custom.
Look to Cater Oils for competitively-priced cooking oil supplies
While the price of cooking oil remains to be turbulent, it is showing signs of settling. One thing you can count on Cater Oils for is competitively-priced, high-quality cooking oil. We can supply cooking oil to a wealth of sectors, industries and businesses. From restaurants and hospitals to schools and pubs, you can always count on Cater Oils. The cooking oils we can supply include: olive oil, pomace oil, rapeseed oil, sunflower oil and vegetable oil.
As well as fresh cooking oil supplies, we can also provide a free waste cooking oil collection service. We will collect your used cooking oil, giving it a new lease of life by way of biodiesel. Not only does our free waste cooking oil collection service mean that you can dispose of your cooking oil safely, but it also allows you to do your bit for the environment. Choose Cater Oils today for all of your cooking oil needs. Whether you need a fresh supply or require the disposal of used cooking oil, we can help.
Cater Oils is pleased to provide fresh cooking oil supplies, alongside a free waste oil collection service when you need it most. If you would like further information about how we can help you today, then get in touch with a member of our friendly, professional team – we’re always happy to hear from you.
