THE National Biofuels Board (NBB) said it supports the suspension of the 1-percentage-point increase in the coco-methyl ester content of biodiesel blend, citing the potential impact on inflation.
Philippine Coconut Authority (PCA) Laboratory Services Division Chief Celia M. Raquepo said at a briefing that the NBB arrived at the recommendation at a recent board meeting, in which it had taken note of the high price of copra, the raw material for coconut oil, and the possibility that these costs may filter into the price of fuel.
The Biofuels Act of 2006 requires all liquid fuel to contain a set proportion of biofuel. The blend rose to 3% in October 2024, from 2% previously. It’s set to further increase to 5% in October this year.
Director Rino Abad of the Oil Industry Management Bureau said the NBB’s recommendation is “not yet official until approved by the Secretary of Energy.”
Secretary Raphael P.M. Lotilla left the Department of Energy in late May after being appointed to head the Department of Environment and Natural Resources.
Ms. Raquepo said the price pressures on copra are not a function of the coconut supply, which she said was “sufficient.”
The per-liter price of diesel rose by 95 centavos on Tuesday, marking the fourth straight week they had increased.
Copra’s monthly average millgate price was P75.34 per kilo in March, surpassing peak levels at the height of the Russia-Ukraine conflict in 2022.
The PCA in March had called for an assessment of the potential impact of the scheduled increase in the biodiesel mandate, in light of the need to “prioritize cooking oil availability for consumers.”
Rosella B. Villaruel of the PCA’s Trade and Marketing department said the global demand for coconut oil has been increasing.
Revenue from exporting coconut oil this year could top the record $2.22 billion generated in 2024, she said.
Coconut production slipped by 0.3% in the first quarter of 2025, nearly reversing the 3.3% decline a year earlier.
The Philippines is the world’s second-largest exporter of coconut products, next to Indonesia. — Kyle Aristophere T. Atienza
