The Department of Energy’s (DOE) Oil Industry Management Bureau (OIMB) will strictly monitor the compliance of oil retailers on the   mandated 3 percent blend (B3) of coco methyl ester (CME) on diesel products.

DOE Undersecretary Allesandro Sales said at the Bagong Pilipinas public forum yesterday the DOE’s OIMB which implements rules on liquid fuels and liquefied petroleum gas is also monitoring bulk terminals where diesel is being sourced before the fuel is delivered to retail stations.

Sales said the potential increase in diesel prices due to B3 is “less than 1 percent.” 

Sales said the higher CME blend has more benefits in the long run, specifically in terms of savings and lower carbon emissions.

“Diesel price will slightly increase but the true gauge is the mileage or the efficiency of running the diesel engine. The increased blend helps give up to 10 percent more mileage,” Sales said.

“One percent addition to the blend can cause a 0.65 percent reduction in emissions. Since the biodiesel blend is increased to 3 percent, emissions will be reduced by almost 2 percent. That will also help us against this climate change crisis,” Sales said.

The increased 3 percent CME blend for biodiesel took effect yesterday from the previous 2 percent mandated blend.

The CME blend will further increase to 4 percent by Oct.  1, 2025 and to 5 percent by Oct. 1, 2026.

DOE earlier said this increase in the CME blend is also expected to benefit coconut farmers, biodiesel producers and other stakeholders in the coconut industry with around 900 million additional coconut nuts needed to produce 100 to 120 million liters of CME requirements to satisfy a 1 percent mandatory increase.