The Department of Energy (DOE) said the impending increase in biofuels blend is expected to benefit farmers in terms of additional market and consumers by way of savings.
Under the new guidelines, downstream oil industry participants are required to implement a 3 percent coco methyl ester (CME) blend in all diesel fuel sold nationwide beginning October 1. This will increase to 4 percent in 2025 and to 5 percent in 2026.
The increase in the CME blend is expected to create additional market for coconut farmers,
biodiesel producers and other stakeholders in the coconut industry with around 900 million
additional nuts needed as feedstocks to produce around 100 to 120 million liters of additional CME requirements to satisfy a 1 percent mandatory increase in CME blend.
DOE said based on a 30,000-kilometer on-road test with a higher CME blend of 5 percent, an increase of around 10 percent in mileage corresponds to an estimated net savings of P4.17 per liter of diesel.
Fuel retailers may voluntarily raise the ethanol blend in all gasoline fuel to 20 percent from the current 10 percent.
DOE said increasing the ethanol blend to 20 percent could bring about an estimated reduction of approximately P3.21 per liter in the gasoline pump price.
“Implementing the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship and strive for cleaner energy utilization. It is also about investing in a future where sustainability drives progress,” said DOE Secretary Raphael Lotilla, in a statement.
Meanwhile, the Sugar Regulatory Administration (SRA) said this new policy may convince local farmers to improve sugarcane production.
“There will be bigger demand forsugarcane and/or molasses, depending on the type of ethanol plant,” said Pablo Azcona, SRA administrator, in a separate statement.
Azcona said the increase in blend will also allow ethanol plants maximize production using local feedstock which can also bring down the average price of ethanol without lowering the price of locally produced ethanol as more imported ethanol is added to the mix.
