GOV'T SUSPENDING SCHEDULED COCO-DIESEL BLEND HIKE

The mandated increase in coco-methyl ester (CME) blend in diesel fuel scheduled to be implemented this year and next is set to be suspended amid the high cost of coconut oil.

"National Biofuels Board (NBB) met two weeks ago. The Board decided to pass a resolution to suspend the implementation of the B4 (4%) blend in October 2025 as well as the implementation of the B5 (5%) blend in October of 2026," Department of Energy (DOE) Undersecretary Alessandro Sales said at a press conference in Taguig City on Friday.

"It was decided because of the prevailing high cost of the coconut oil, which is the principal feed stock for our coconut methyl ester as the [main] biodiesel component being sold in the Philippines," Sales said.

Energy Secretary Raphael Lotilla said the NBB resolution is "already being circulated for signature."

"It's the Board which is composed of several agencies that actually approves it," Lotilla said.

The NBB, created through the Biofuels Act, is composed of the secretary of DOE as chairman and the secretaries of the Department of Trade and Industry, Department of Science and Technology, Department of Agriculture, Department of Finance, Department of Labor and Employment, and the administrators of the Philippine Coconut Authority and Sugar Regulatory Administration, as members.

The Biofuels Act of 2006 mandates that liquid fuels be blended with biofuels. 

In October 2024, the CME blend was increased to 3% from 2% in a bid to decrease dependence on imported fuels and to support local biodiesel sectors. 

"At the beginning of 2024, the price of coconut oil in the international market was about $1,100 [per metric tons]. At the time of the decision of NBB, the price was over $3,000," Sales said.

"Increasing the mandate to B4 would increase the price pressure… [thus], the NBB decided to suspend the implementation of the higher mandate for biodiesel," he said.

Although the timeline on how long the suspension will be implemented has yet determined, Sales said that "there will be a periodic review."

"The intent of increasing the blend is still there," the DOE official said.

Dean Lao Jr., president of Chemrez Technologies Inc., said that "coconut is our feedstock for Biodiesel and the El Niño of 2024 adversely affected supplies in 2025."

Chemrez Technologies is currently the country's largest biodiesel manufacturer.

Lao said, "The NBB and PCA has evaluated the supply situation and has given a sensible recommendation to postpone B4. The industry awaits a more definite date for the resumption of the B4 mandate from the NBB. It needs at least five months in advance to prepare for implementation."

"The progression towards B5 remains a sound and sustainable solution for the Philippines to attain its economic, environmental and health goals," said the Chemrez chief. — VDV, GMA Integrated News

This article Gov't suspending scheduled coco-diesel blend hike was originally published in GMA News Online.

2025-06-13T13:13:35Z