Scramble for biofuel as oil prices rise ‘could push world closer to food crisis’

The Guardian5 Jun 2026Supply chain
Automatically composed with AI from the cited sources

Global biofuel demand is forecast to leap nearly a third this year as oil nears $100 a barrel after the US-Israeli strikes on Iran and the closure of the Strait of Hormuz, according to Transport & Environment. The US, Indonesia, Brazil and Thailand are among countries increasing biofuel blending mandates; T&E projects a 70% rise in demand by 2030 if oil supply remains constrained. The thinktank notes that globally about one in 20 tonnes of fertiliser is used for biofuel crops — rising to a tenth in the US and a fifth in Indonesia — and that reaching a 20% biofuel share of road fuel would require an area the size of South Africa. During the 2007-08 food crises, the UN FAO estimated biofuel use contributed 40–70% of the increase in maize and soya bean prices.