MANILA, Philippines — The Philippine government is looking into suspending the mandated increase in the blend ratio of biofuels scheduled for October, to manage the potential spike in fuel prices.
“The National Biofuels Board (NBB) recently had a meeting and it was proposed that the B4 implementation for October will be suspended,” said Ma. Celia Raquepo, chief of the Philippine Coconut Authority’s (PCA) Laboratory Services Division.
B4 refers to a biodiesel blend with 4 percent coco-methyl ester (CME), which is derived from coconut oil.
According to the Department of Energy (DOE), the increase of CME in the blend is intended to promote the use of cleaner energy as well as economic growth.
Raquepo said the recommendation was raised during the NBB meeting as the scheduled increase in the CME blend in all diesel fuel products sold within the country could jack up coconut prices.
“The CME price will also increase,” she told reporters.
The NBB proposal is subject to the approval of the Energy Secretary, who chairs the board.
Created under the Biofuels Act of 2006, the NBB is tasked with monitoring the implementation of the National Biofuel Program as well as the supply and usage of biofuels and biofuel blends, among others.
Other NBB members include the heads of other government agencies, including the PCA, Department of Trade and Industry, Department of Agriculture and Department of Finance.
Biofuels Act
The Biofuels Act of 2006 requires all industry players to incorporate locally sourced biofuels in all liquid fuels for motors and engines sold in the Philippines.
The law states that at least 5 percent bioethanol shall comprise the annual total volume of gasoline fuel sold and distributed by each oil company within two years from the law’s enactment.
Meanwhile, the CME blend in diesel was raised to 3 percent from 2 percent previously on Oct. 1, 2024. The ratio would subsequently increase to 4 percent by Oct. 1 this year and 5 percent by Oct. 1, 2026.
The DOE earlier said the higher CME blend would benefit coconut farmers, biodiesel producers and other stakeholders in the coconut industry.
On Tuesday, the price of gasoline climbed by 60 centavos per liter, diesel by 95 centavos per liter and kerosene by 30 centavos per liter.
Since the start of 2025, gasoline prices have recorded a net increase of P3.10 per liter while diesel prices had a total net increase of P3 per liter.
Also, according to the DOE’s price monitoring as of May 8, kerosene prices have registered a net decrease of P2 per liter.
