This paper describes the properties of refined, bleached, deodorized palm oil (RBDPO) as having the potential to be used as insulating liquid. There are several important properties such as electrical breakdown, dielectric dissipation factor, specific gravity, flash point, viscosity and pour point of RBDPO that was measured and compared to commercial mineral oil which is largely in current use as insulating liquid in power transformers. Experimental results of the electrical properties revealed that the average breakdown voltage of the RBDPO sample, without the addition of water at room temperature, is 13.368 kV. The result also revealed that due to effect of water, the breakdown voltage is lower than that of commercial mineral oil (Hyrax). However, the flash point and the pour point of RBDPO is very high compared to mineral oil thus giving it advantageous possibility to be used safely as insulating liquid. The results showed that RBDPO is greatly influenced by water, causing the breakdown voltage to decrease and the dissipation factor to increase; this is attributable to the high amounts of dissolved water
