Local coconut industry stakeholders called on the government to implement the long-delayed increase in the coco-biodiesel blend to 5 percent (B5) from the current 2 percent (B2) for all diesel sold at the pumps to provide relief to coconut farmers amid the pandemic.
The Philippine Biodiesel Association (TPBA) said increased volume of coco-biodiesel will also hike the contribution of coco methyl ester (CME) producers to a fund that supports livelihood and training programs for coconut farmers and biodiesel workers.
CME producers chip in 5 centavos per liter as lien to the fund administered by the Department of Labor and Employment (DOLE) for its social amelioration and welfare program which can also be spent for emergency assistance for dul- registered farmers, farm workers associations, cooperatives and plant workers groups and unions, among others.
Under a DOLE department order issued in 2018, the amount of lien is subject to review every two years for possible adjustment upon the recommendation of the council composed of representatives of management, labor and government sectors.
Biofuels Act mandated the blending of 1 percent (CME) in local diesel products beginning 2006. This was raised to B2 in 2007 but remained unchanged since.
The Philippine Energy Plan requires biodiesel to contain at least 5 percent CME blend by 2020 but this was not implemented due to the pandemic that had caused difficulties in logistics and transportation.
The TBPA also said shifting to B5 will translate to foreign exchange savings on fuel imports amounting to nearly P13.6 billion per year with the value of displaced petro-diesel to benefit local producers.
The group said motorists will also gain both in mileage and savings with the B5 blend based on road tests conducted by the University of the Philippines National Center for Transportation Studies in collaboration with the Department of Energy and the PCA.
The studies found increasing the current blend from B2 to B5 will result in a 6 to 10 percent increase in mileage. Net fuel cost savings range from P1.50 to P3.00 per liter of B5 diesel based on current pump prices.
The Philippine Coconut Industry (PCA) assured there is more than enough feedstock supply if the blend will be increased.
The agency said the needed feedstock to supply the projected B5 demand is 4.3 billion nuts out of the 17 billion estimated production for this year. Output is expected to further grow to 20 billion nuts by 2025.
PCA said without strong domestic demand, the only choice is to export crude coconut oil at lower prices
But the implementation of the B5 program can stabilize the price and demand for copra to encourage farmers to plant more.
