Manila: Biodiesel producers in the Philippines have said they are ready to increase the biodiesel blending level to 7 percent to help cushion the impact of rising imported fuel prices amid tensions in the Middle East, Inquirer.net reported.
The Philippine Biodiesel Association (TPBA) said the Biofuels Act of 2006 remains the country’s strongest safeguard against disruptions in global oil supply and sudden price increases.
At present, biodiesel blending in the country stands at 3 percent. However, the association said local producers have already expanded their production capacity and can supply up to a 7-percent biodiesel blend if the government approves the move.
Ramon Taniola, executive director of the Philippine Biodiesel Association, said the law was enacted nearly two decades ago to prepare the country for fuel supply crises and price shocks.
He added that the continued implementation of the blending programme would also support the local coconut industry, improve fuel efficiency and help reduce emissions.
Earlier, a committee of the Philippine Council for Agriculture and Fisheries, an agency attached to the Department of Agriculture, approved a manifesto calling for full implementation of the Biofuels Act and an immediate transition to a 5-percent biodiesel blend.
The National Sectoral Committee on Coconut said increasing the use of coconut-based biodiesel in diesel fuel would reduce dependence on imported petroleum and create a stable market for millions of coconut farmers.
The committee is expected to submit the proposal to Francis Pangilinan, chair of the Senate committee on agriculture, food and agrarian reform.
TPBA said 14 biodiesel plants in the country currently use locally sourced coconut oil to produce coconut methyl ester, a renewable alternative to fossil-based diesel.
The group also noted that coco-biodiesel remains cost-efficient, with blended diesel often priced at the same level as or even lower than regular diesel. According to the association, improved fuel efficiency from biodiesel could generate annual savings of between P17 billion and P32.6 billion for motorists.
Fuel prices in the Philippines are expected to rise again this week, with diesel prices likely to approach P100 per litre.
