NEW DELHI, Jan 20 (Bernama) -- The potential of using vegetable oils, suchas palm oil and soya oil as bio-fuels is increasing considerably aspetroleum crude prices continue to rule high.

This were the views of Dr. Yusof Basiron, Director General of theMalaysian Palm Oil Board (MPOB) and Mr. Carlos Lovateli, President ofBrazilian Vegetable Oil Industries Association who made theirpresentations before the 74th IASC World Congress.

They were quoted as saying by a Mumbai-datelined report in the financialdaily, the Hindu Business Line.

"Petroleum price increase tendency is a strong indication that biodieselshould become more competitive over the next few years," Lovatelli said inhis presentation "Vision 2020 Soya."

Various countries such as Malaysia, the US and Brazil are investingheavily on research to gradually make this biofuel an alternative to crudeoils.

"In many countries, diesel is more expensive than petrol fuel. So more ofpalm oil can be disposed to diesel industry and, therefore, palm oil canbe used as a safeguard measure against increase in petrol price," Dr.Basiron was quoted as saying in his presentation "Vision 2020 - The PalmOil Phenomenon."

"Palm diesel may be the alternative to the fluctuating price and defendthe floor price. The future of the palm oil industry may well hingesimultaneously on the development of the biofuel sector," he said.

Malaysia and Indonesia are the world's largest producers of palm oil andthe Brazil and Argentina are the leading producers of soya oil.

On the issue of price parity among vegetable oils, Dr. Basiron said thecurrent discount of US$150 on soyabean oil and US$300 on rapeseed oil mustbe corrected.

-- BERNAMA