Changes In The Used Cooking Oil Collection Industry

Reason Why Companies Stopped Paying Rebates For Used Cooking Grease

Recycling and Repurposing Inedible Kitchen Waste Since 1988

Declining Cooking Oil Prices

It seems as if it was just so recent that used cooking oil collection companies were paying a substantial amount of money for waste cooking oil.  Grease collectors were going from restaurants to restaurants to gain business by offering cash per gallon for every drop of oil that is collected.  Unfortunately, those times are gone and so are some of the smaller grease collection companies.  With the price of oil commodities on a steady decline, most are not able to stay afloat to keep their business open.  Used cooking oil companies are now starting to reposition their business structure before it’s too late.  Some of the major companies have already started charging for used cooking oil collection and it’s only a matter of time that the rest will follow the trend if the market continues to tumble.

Cause of the downfall

The cause and effect relationship between crude oil and used cooking oil has a lot to do with the decline in value. When price of diesel is at its high point, it drives the price of cooking oil to rise as well. With the price of diesel reaching above $4.00 a gallon within the past year combined with other rebates that the government is providing the fuel companies, it sky rocketed the used cooking oil value. Now that diesel is nearly $2.00 per gallon bio diesel companies are no longer willing to pay the same for the commodity. In fact, some of the largest bio diesel plants have closed down their doors after spending millions because of the decline.

Price Speculation

Speculators still believe the pricing for used cooking grease still has not settled. The drop may not be as drastic as it has been, but pricing still has not settled. The used cooking oil collection industry is now taking actions by having a base minimum of used cooking oil that they will collect from food servicing facilities to maintain a free grease collection service. For companies that need collection below the minimum requirements, a service fee will be charged for every collection requested.


With prices of used cooking oil being at its lowest since 2000’s, purchasing cooking oil from restaurants is not realistic for grease collection companies. While some grease collectors still remain optimistic that prices of used cooking oil will soon rise, many have already started to charge for their services or even close their business. At this point, speculators do not believe that prices will rise in the near future. In fact, if the market continues to decline their may be just a handful of companies that will be leftover.