Currently production capacity is 580MM gallons; an additional 1,400MM gallons are expected to be produced within the next 18 months, bringing the total supply around 2 billion gallons annually. Demand is very heavy due to government tax incentives and regulations, however at some point the market price of biodiesel has to decrease as consolidation in the supply market (like Exxon) will drive prices lower. Currently price of biodiesel is around $2.75/gallon. What is the impact of supply oversaturation in the biodiesel price?
Free mortgage quote












the laws of supply and demand are in play at this situation and they always will be. if the supply exceeds the demand the price or the supply will drop or they will look at other markets to supply to as well to maintain the demand. most likely they will hit the advertising trail to increase the demand