Source: Ukragroconsult (Ukraine)
Malaysia raises palm oil export duty for May 2026. The government raised the reference price of crude palm oil for May. Therefore, export duties automatically increased to a maximum of 10%. The decision appeared in a circular on the Malaysian Palm Oil Council’s website.
Key changes in the new duty structure
According to the new data, the reference price for May stands at 4,521.89 ringgit per tonne. That equals approximately US$1,143. For comparison, in April, this figure was 3,935.19 ringgit per tonne. Consequently, the lower April figure corresponded to a lower export duty of 9.5%.
How Malaysia raises palm oil export duty progressively
Malaysia, the world’s second-largest palm oil exporter, applies a progressive tax scale. The base rate starts at 3%. This rate applies for prices in the range of 2,250–2,400 ringgit per tonne. Meanwhile, the maximum duty of 10% applies above the threshold of 4,050 ringgit.
Market impact of the duty increase
The tariff increase reflects rising global palm oil prices. It could also impact global edible oils markets. Experts note that such changes could affect product costs for importers. Likewise, they could affect the income of producers in the region.