Philippines to Increase Biodiesel Blend Starting October, DOE Announces

Manila – The Department of Energy (DOE) of the Philippines has declared that the biodiesel content in diesel fuel will see a mandated increase beginning October this year. The initiative, outlined in Department Circular 2024-05-0014, aims to progressively augment the coco methyl ester (CME) blend in diesel fuels nationwide, starting with a blend of 3 percent by October 1, 2024.

According to Philippines News Agency, the decision to raise the biodiesel blend supports multiple national objectives including economic growth, environmental stewardship, and the transition towards cleaner energy sources. The plan details a gradual increase, targeting a 4 percent blend by October 1, 2025, and reaching 5 percent by October 1, 2026.

The DOE has outlined the benefits of this adjustment, highlighting that it will generate additional demand for local coconut farmers and biodiesel producers by necessitating approximately 900 million more coconut nuts as feedstock. This will support the production of an additional 100 million to 120 million liters of biodiesel.

Moreover, the department reported that testing with a 5 percent CME blend over 30,000 kilometers on the road demonstrated a potential 10 percent increase in mileage, leading to an estimated net savings of PHP4.17 per liter of diesel. Additionally, downstream oil industry players have the option to increase the ethanol blend in gasoline fuels from the current 10 percent to 20 percent, potentially reducing domestic fuel prices by about PHP3.21 per liter.