The Department of Energy (DOE) through the Oil Industry Management Bureau (OIMB) is set to further intensify monitoring activities to ensure full compliance with the mandated 3 percent coconut methyl ester (CME) blend in all diesel fuel sold nationwide.
The DOE in a statement over the weekend said the OIMB will gradually expand its inspections in the coming weeks to maximize the country’s benefits from the increased blend, especially in terms of greenhouse gas (GHG) emissions avoidance.
The DOE reported a notable avoidance in GHG emissions, totaling 7,433 kilotons of carbon dioxide equivalent based on the April 2007 to September 2024 sales data from accredited local biofuels producers.
Citing the United Nations Intergovernmental Panel on Climate Change Carbon Emission Calculator, the DOE said the 3 percent CME blend would also displace around 300 million liters of pure diesel annually which translates to an estimated 1.11 percent reduction in carbon emissions, equating to around 298.2 kilotons of carbon dioxide.
“Oil companies have been given ample time to make this adjustment and the OIMB will now conduct inspections at bulk depots to enforce compliance. Timely action at the depot level is crucial to maintaining an up-to-date and efficient fuel distribution chain,” said DOE Undersecretary Alessandro Sales, in the statement.
Beyond environmental and health impacts, the DOE said the increased mandated CME blend also has positive economic impacts, noting that as of end-2023, the local biofuels industry has generated 3,260 jobs.
The increased blend is also expected to boost demand for coconut farmers, biodiesel producers and other stakeholders in the coconut industry as the DOE estimates that around 900 million additional coconuts will be needed to produce the extra CME required to meet the mandated blend percentages, translating to approximately 100 to 120 million liters of additional CME supply.
DOE added consumers stand to benefit from improved fuel efficiency and cost savings when using diesel with a higher CME blend.
Extensive on-road testing with a 5 percent CME blend showed a 10 percent increase in mileage which is roughly equivalent to an additional 1 kilometer per liter which translates to approximately P5 in savings per liter, based on the September 24 to 30, 2024 average fuel pump price of P54.70 per liter.
The DOE said non-compliance with the 3 percent biofuels blend will result in penalties of P200,000 and is also considered as an adulteration.
Possession of biofuels blend that fails to meet the Philippine National Standards requirements is also considered adulteration. For repeat offenders, a fine of P300,000 will be imposed, which may also lead to the revocation of their accreditation or registration.
In 2007, the country implemented a 1 percent biodiesel blend in compliance with the Biofuels Act adopted in 2006 before the blend was increased to 2 percent in 2011. From the current 3 percent CME blend, in all diesel fuel sold nationwide effective last October, the blend is set to further increase to 4 percent by October 2025 and ultimately to 5 percent by October 2026.
