Manila: The Department of Agriculture (DA) will recommend delaying the scheduled increase in the use of coconut oil for biodiesel production, citing the need to stabilize supply and ease rising prices of copra and cooking oil, reports Philstar Global.
Agriculture Secretary Francisco Tiu Laurel Jr. said the agency would advise the government’s economic cluster to defer the planned one-percentage-point increase in the coco-methyl ester (CME) blend mandate, currently set for October, to at least 2026.
“The implementation will likely be pushed back because of limited coconut oil supply, and we’ve also seen prices go up sharply,” Tiu Laurel said on the sidelines of the Philippine Poultry Show 2025 and the International Livestock, Dairy, Meat Processing and Aquaculture Exposition in Pasay City.
Under the Biofuels Act, diesel fuel must include a blend of CME, with the percentage gradually increasing over time.
Industry groups and the Philippine Coconut Authority (PCA) have warned that pushing through with the October hike could divert coconut oil away from food production, worsening the price surge already straining households and industries.
PCA data showed farmgate copra prices had climbed to ₱58.10 per kilo as of March, more than double the levels recorded in early 2024. Mill gate prices reached ₱75.34 per kilo, surpassing the 2022 peak during global supply disruptions. Refined coconut oil, widely used for cooking, was priced at ₱172 to ₱182 per kilo at the mill gate, while suppliers reported an average company price of ₱168.83 per liter, compared with a suggested retail price of ₱173.90 per liter.
The PCA said these increases, if unchecked, would not only squeeze household budgets but also affect industries dependent on coconut oil as a raw material. The agency added it would strengthen coordination with the Bureau of Customs to curb illegal exports and protect domestic supply.
Alongside the review of the biofuels mandate, the PCA is also pushing long-term measures under its Coconut Productivity Masterplan, including replanting, fertilization and intercropping programs.
