Now is the perfect time for the government to consider increasing the 2-percent coco biodiesel blend (B2) to 5 percent (B5) as its price is now lower than that of diesel, according to the United Coconut Association of the Philippines (UCAP).
Dean Lao Jr., UCAP chairman, told reporters at the third World Coconut Congress in Pasay City yesterday the price of biodiesel blend now ranges from P55 to P60 per liter compared to diesel at P60 to P70 per liter.
Data from the Department of Energy as of August 22 showed Manila price per liter of regular diesel ranges from P58.99 to P69.24 while the average price of premium diesel is P65.80 per liter following a cumulative P13.20 increase the past eight weeks.
Lao said increasing the current B2 to B5 will require the supply of 280 million liters of biodiesel which can be easily supplied by local coconut producers.
“We have enough for B12 or B15… We have that much coconut oil,” Lao added.
UCAP said using more biodiesel in the country will save foreign exchange, will yield gains in mileage and will have a positive effect on the environment.
The group said these benefits are 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 Philippine Coconut Authority.
Since the enactment of the Biofuels Act of 2006 which implemented a 1 percent coco methyl ester blend in local diesel products, the ratio was increased only once, to B2 in 2007.
Under previous iterations of the Philippine Energy Plan, biodiesel should have contained at least 5 percent CME blend by 2020.
UCAP added that the push for a B5 blend will give coconut farmers with an assured market and value addition, among other benefits.
