Manila: The United Coconut Association of the Philippines (UCAP) has voiced strong support for the government’s plan to increase the biodiesel blend in diesel fuel to four percent starting in 2026. The move is expected to boost demand for copra, the dried coconut product used to make coconut oil, from the $2.6-billion local coconut sector, reports philstar Global.
UCAP chairman Dean Lao welcomed the government’s decision to maintain the blend at four percent, which had been delayed due to rising copra and cooking oil prices. Speaking at the World Coconut Congress 2025 in Pasay City, Lao said the policy gives the industry time to prepare for the higher biodiesel mandate.
B4, as the four-percent blend is known, uses coconut oil converted into coco methyl ester (CME), which is then mixed with diesel. Currently, diesel contains a three-percent CME blend. Coconut oil is the main raw material, derived from dried coconuts processed into copra and then pressed into oil.
Lao noted that the benefits of biodiesel are often overlooked, including improved fuel efficiency. “A comprehensive test showed that adding biodiesel improved mileage by 10 percent,” he said.
Earlier in June, the Philippine Coconut Authority (PCA) had warned that advancing the biodiesel increase could divert coconut oil away from food production, potentially exacerbating the rise in cooking oil prices for households and industries.
