The United Coconut Association of the Philippines Inc. has expressed support for increasing the biodiesel blend in 2026, expecting that the local coconut supply will normalize by then.
“Once our supply normalizes—which we expect to happen next year due to favorable rates this year and the fact that the trees have rested—we’re confident the increase can proceed,” UCAP Vice Chair Dean Lao Jr. said on September 25.
Lao described the government’s decision to postpone the mandatory hike in the biodiesel blend as a “very sensible move.”
“If we had proceeded with B4 (4 percent), we wouldn’t know how the supply chain might react. I think maintaining it at the current level gives us time to prepare,” Lao added.
The Department of Energy (DOE) suspended the implementation of the 4 percent and 5 percent biodiesel blends, originally scheduled for October 1, 2025, and October 1, 2026, respectively.
“The decision was made in view of the anticipated significant impact on pump prices and the potential inflationary effects on the national economy,” the DOE stated in its advisory dated July 17, 2025.
According to the advisory, the National Biofuel Board, led by the DOE, will regularly monitor the market and recommend appropriate interventions to help stabilize biodiesel prices and its feedstock, while providing relevant updates to the industry.
The DOE implemented a 3 percent coconut methyl ester (CME) blend in all diesel fuel sold starting October 1, 2024.
Under the Biofuels Act of 2006, all liquid fuels for motors and engines sold in the country must be blended with biofuels.
