A large energy input for preheating and recovering of high excess alcohols used are the main issue in the supercritical methanol (SCM) process. This work demonstrated the production of biofuel from used palm olein oil in SCM using a low methanol to oil molar ratio. The effects of the operating temperature (350–400 °C), methanol to oil molar ratio (9:1–12:1), and reaction time (2–10 min), and their reciprocal interactions were evaluated using a central composite design. The optimum process conditions were determined to be a temperature of 395 °C, methanol to oil molar ratio of 12:1, and reaction time of approximately 9 min through the use of response surface methodology. The modified quadratic regression model demonstrated that the triglyceride conversion (%XTG) and methyl ester content (%FAME) were sensitive to changes in the operating temperature and reaction time, while the effect of the methanol to oil molar ratio was minimal. Under the optimal operating conditions, the predicted values of %XTG and %FAME were 100% and 63.67%, respectively, which were in good agreement with the experimental values. The fuel properties of biofuel obtained from optimal conditions were examined and then compared to American and European standards for biodiesel. © 2016 Curtin University of Technology and John Wiley & Sons, Ltd.