Manila: The Philippines is looking to accelerate its bioenergy transition by supporting a higher biodiesel blending mandate, a move aimed at reducing fuel costs, strengthening energy security and creating greater value for the country’s coconut sector.
The Department of Agriculture (DA) has endorsed a proposal to raise the current biodiesel blend level from three percent to five percent, positioning the shift as part of broader efforts to expand the country’s use of renewable energy and locally sourced biofuels.
Agriculture Secretary Francisco Tiu Laurel said he supports a policy resolution submitted by the Philippine Council for Agriculture and Fisheries (PCAF), which recommends an immediate transition to B5 biodiesel.
The recommendation, put forward by PCAF’s National Sectoral Committee on Coconut, comes as fuel prices remain elevated. While the advisory body noted that the measure is not an immediate solution to fuel costs, it said a higher blend of coconut-based biodiesel could improve fuel mileage over time and gradually reduce fuel expenses for motorists.
The transition to B5 had originally been scheduled for October this year but remains uncertain as the country continues to operate under the current B3 blending requirement.
Last year, the Department of Energy suspended implementation of B4 and B5 following a recommendation from the National Biofuels Board after global coconut oil prices surged sharply.
Coconut oil is the primary feedstock used to produce coco methyl ester (CME), which is blended with diesel to create biodiesel. Compared with conventional diesel, CME offers lower sulfur emissions and reduced greenhouse gas emissions.
The Department of Agriculture said market conditions have improved and now support not only lifting the suspension but also advancing implementation of the higher biodiesel blend.
According to Tiu Laurel, expanding demand for CME could generate stronger returns for up to 3.5 million coconut farmers while increasing utilisation across the domestic coconut industry.
He added that greater biodiesel adoption would strengthen the country’s energy independence by reducing dependence on imported fuel and increasing the use of renewable domestic resources.
The agriculture department confirmed that the proposal has been submitted to Senator Kiko Pangilinan, chair of the Senate committee on agriculture, food and agrarian reform, and Energy Secretary Sharon Garin.
Under the Biofuels Act, fuel suppliers are required to incorporate locally sourced biofuels into transport fuels to reduce import dependence and support the domestic coconut industry.
The Philippines introduced a one-percent biodiesel blend in 2007, increased it to two percent in 2011 and expanded it to the current three-percent level in 2024.
