Top producers of palm oil in Indonesia and Malaysia have an outlet in the U.S. market at near-record levels because of a blending tax credit for alternative fuels opening the way for shipments of palm biodiesel. Palm oil inventories in Malaysia are at near record levels at 2.65 million tons as of the end of 2012. The high supply and the reinstated tax credit have made biodiesel from SE Asia competitive with petroleum diesel. The U.S can import palm methyl ester (PME) or palm-based biodiesel at around $1,000 per ton – this is cheaper than U.S. soyoil-derived fuel at around $1,200 per tons. Adding to this the $1 per gallon tax credit and despite palm oil’s poor ecological reputation, demand could be driven by price alone.