THE government will suspend the implementation of a 4-percent biodiesel blend in all fuel sold nationwide which is supposed to start Oct. 1, 2025, due to the high cost of coconut oil, Department of Energy (DOE) officials said Friday.
The National Biofuels Board (NBB) passed a resolution to suspend the B4 mandate (diesel mixed with 4-percent coco-methyl ester blend) in October 2025, as well as the planned implementation of the B5 (5-percent coco-methyl ester blend) in October 2026, said DOE Undersecretary Alessandro Sales.
“This was decided because of the prevailing high cost of coconut oil which is the principal feedstock for our coco methyl ester, the biodiesel component in the diesel being sold in the Philippines,” Sales told a briefing.
He said the DOE would conduct “a periodic review” and that “the intent to increase the blend is still there.”
Dean Lao Jr., president of Chemrez Technologies Inc., one of the country’s largest biodiesel producers, said coconut feedstock for biodiesel was affected by the El Niño weather phenomenon in 2024, impacting supplies in 2025.
“The NBB and PCA [Philippine Coconut Authority] has evaluated the supply situation and has given a sensible recommendation to postpone B4,” Lao said.
“The industry awaits a more definite date for the resumption of the B4 mandate from the NBB. It needs at least 5 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,” he said.
The Biofuels Act of 2006 (Republic Act No. 9367) mandates blending biofuels such as coco-methyl ester for diesel and ethanol for gasoline into petroleum products.
Sales noted that the price of coconut oil in the international market was around $1,100 per metric ton at the beginning of 2024.
“At the time of the decision of NBB, the price was over $3,000 per metric ton,” he said.
“The price last week has now subsided a bit, just below $3,000 per metric ton. But still, it is a significant increase and the increase actually translates to higher cost of diesel at the pump because of the mandate,” said Sales.
“Increasing the biodiesel mandate now to B4 would add to this price pressure,” Sales said, clarifying that the NBB makes recommendations and the Energy Secretary implements them.
DOE Secretary Raphael Lotilla said the price of coconut and coco-methyl ester is being driven by external factors. He said Europe has curtailed the use of palm oil due to “destructive methods used to expand palm oil production in parts of Southeast Asia.”
Lotilla said that while the government has a significant program to plant more coconuts, additional volumes would only be available in five to seven years.
He said the DOE and the NBB aim to ensure domestic production meets demand.
“The bottom line is our farmers, our coconut farmers are happy with the prices that they are getting right now for the price of coconut oil,” he said.
