Oil surge lifts biofuel demand 30% as food prices rise
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- Biofuel demand is projected to jump nearly 30% this year, according to Transport & Environment (T&E).
- Oil prices have surged to almost $100 per barrel after US‑Israeli attacks on Iran and the closure of the Strait of Hormuz, prompting countries like the US, Indonesia, Brazil and Thailand to increase biofuel blending.
- Transport & Environment estimates that biofuel demand could rise 70% by 2030 if oil supplies stay constrained.
- Kädi Ristkok of T&E warns that expanding biofuels will pressure food prices and the environment, calling the policy a 'dangerous game.'
- Fertilizer use for biofuel crops accounts for about 5% globally, but 10% in the US and 20% in Indonesia, highlighting competition with food production.
- Simon Suzan notes that biofuel use contributed 40‑70% of maize and soybean price spikes during the 2007‑08 food crises, and that US food price inflation is projected at 2.2‑4.7% this year.
- Renewable electricity (e.g., solar panels covering 3% of biofuel land) could power a third of the global car fleet, offering a lower‑land‑use alternative to biofuels.
Why it matters: Governments secure more fuel amid oil scarcity, while farmers and low‑income consumers face higher food costs as fertilizer and land are diverted to biofuel crops; the approach also raises carbon emissions by about 16% compared with the fossil fuels it replaces.
