I'm not sure where you're getting that info from Mark, but that's contrary to everything that I've heard/read since I started researching and using veg oil as fuel.
In my own experience this has been borne out by adding lube to the fuel like Millers Ecomax, ZX1 or Two stroke oil - without these the engine struggles to rev through the normal upper rpm range (eg 2200 - 3500), but with them it's fine.
As the fuel isn't really going to make much difference to mechanical drag/lubrication of pistons, it can only be the fuel delivery system that is suffering, as it runs at high pressure and is lubricated by the fuel only and must be that the IP and injectors are only able to work at limited speed due to the lack of lubricity in the fuel.
It's well quoted on both the veg/bio forums I frequent.
I think the mechanical drag you are experiencing maybe more due to viscosity and slower burning of oil.