The Department of Energy (DOE) announced that any resumption of plans to increase the biodiesel blend will be subject to evaluation by the National Biofuels Board (NBB), following the decision to suspend the initiative due to limited supply and rising costs of coconut oil.
During a briefing held on Friday, June 13, Energy Undersecretary Alessandro Sales said the biofuel program will undergo periodic assessment to determine whether the proposed blend increases are viable under current conditions.
“The board will regularly study the potential resumption, taking into account several factors—not just the cost, but also the availability of feedstock,” Sales said.
He pointed out that coconut oil, the primary source for coco methyl ester (CME), is facing increasing demand across various sectors, creating competition for supply. “There are a number of competing demands, and we saw during the transition to the B3 blend that there were necessary logistical adjustments from both CME producers and oil companies,” he noted.
The NBB recently recommended deferring the scheduled rollout of the four percent biodiesel blend (B4) set for October 2025, as well as the five percent blend (B5) planned for October 2026.
“This recommendation came in response to the continued high prices of coconut oil, which is our main raw material for CME—the biodiesel blended with diesel sold in the country,” Sales explained.
He cautioned that moving forward with B4 under current market conditions would only increase cost pressures, but clarified that this does not equate to shelving the plan entirely.
Outgoing Energy Secretary Raphael P.M. Lotilla acknowledged the current challenges, but also emphasized the benefits that high coconut oil prices are bringing to local farmers.
“The government has a long-term replanting program for coconuts, and we expect to see additional volumes over the next five to seven years,” Lotilla said. “The key is making sure supply meets demand both locally and for exports. Right now, our farmers are seeing better prices, which is good for the rural economy.”
Chemrez Technologies, Inc., one of the country’s major biodiesel producers, also backed the postponement. The company cited the impact of the 2024 El Niño weather pattern, which disrupted coconut production and affected supply levels in 2025.
“Coconut is our primary biodiesel feedstock, and the supply challenges we’ve experienced make the NBB’s recommendation to delay B4 a prudent move,” a Chemrez official said.
The company added that producers would need at least five months’ lead time to adequately prepare for the B4 implementation, once a new rollout date is confirmed.
Despite the delay, Chemrez reiterated its support for the planned shift to B5, calling it a “sustainable and forward-looking step” aligned with the country’s environmental, economic, and public health goals.
Under the Biofuels Act of 2006, all diesel fuel sold in the Philippines must contain a percentage of CME to reduce emissions and support the domestic coconut industry.
