THE Philippine Biodiesel Association (TPBA) recommended caution on proposed changes to Republic Act (RA) No. 9367, or the Biofuels Act of 2006, particularly on the suspension of the coco-biodiesel program when blended diesel hits certain price triggers.
In a statement over the weekend, the group said that while it acknowledged the intent of House Bill (HB) No. 4151 to protect consumers, the proposed measure needs to be evaluated “with a complete understanding of its wider implications.”
RA 9367 requires that all liquid fuels contain locally sourced biofuel components.
HB 4151, otherwise known as the Murang Langis Act, seeks to grant the president the authority to suspend the program if the price of blended diesel is at least 5% higher than that of pure diesel.
TPBA said blended diesel “is not always more expensive” and in fact, at par or cheaper than pure diesel, particularly during global oil volatility.
Citing studies by the Department of Energy (DoE) and the University of the Philippines’ National Center for Transportation Studies, TPBA said that although higher biodiesel blends cost a little more per liter, they promise mileage gains that translate to consumer savings.
The group said that the DoE is already ensuring energy security and balancing stakeholder needs, which it hope to “preserve that momentum.”
“Our contribution to the discussion is simply to highlight additional considerations to help ensure that all angles are fully evaluated. We believe this approach supports the spirit of HB 4151 and the broader goals of government,” TPBA Executive Director Ramon Taniola said.
TPBA said that millions of Filipinos depend on the coconut industry, and the biodiesel mandate has become one of the most stable domestic markets supporting farmers at a time of global commodity uncertainty.
“Any potential changes to the mandate… should take into account how stability affects replanting, modernization, and long-term productivity programs,” the group said.
The government started ordering the increase of the coco methyl ester (CME) blend in diesel to 3% (B3) in October last year, in a bid to reduce pump prices and support the local industry. CME is a biodiesel component derived from coconut oil.
Oil firms are due to increase the coco biodiesel blend to 4% by Oct. 1, 2025, and to 5% by Oct. 1, 2026.
The implementation, however, has been suspended due to the high cost of coconut oil.
This week, oil industry analysts are projecting a possible increase of P0.80 to P1 per liter for diesel. Since January, the price of diesel has increased by P24.05 per liter. — Sheldeen Joy Talavera