Negosyante News

October 2, 2024 2:49 am

Diesel to Include 3% Coco Methyl Ester Blend Starting October 1 —DOE

Starting October 1, diesel fuel in the Philippines will now contain 3% coco methyl ester (CME) blend, up from 2%, as part of efforts to reduce dependence on imported fuels and support the local biodiesel industry, according to the Department of Energy (DOE).

Energy Undersecretary Alessandro Sales explained that this move is in line with the Biofuels Act of 2006, which mandates blending biofuels into all liquid motor fuels sold in the country.

“This program gradually increases the biodiesel blend. More CME blend means greater demand for coconut oil, directly benefiting coconut farmers,” Sales said during an interview on Bagong Pilipinas Ngayon.

The CME blend will increase to 4% by October 1, 2025, and reach 5% by October 1, 2026, with the DOE implementing the gradual increase to ease the transition for biorefineries.

Sales noted that the increase may lead to a less than 1% rise in diesel prices per liter, but added that more CME translates to better mileage for diesel vehicles. “When the blend reaches B5 (5%), mileage could increase by up to 10%,” he said.

The policy also aims to reduce greenhouse gas emissions, with a 0.65% reduction in emissions per 1% biodiesel mix. With the new 3% blend, emissions could decrease by nearly 2%, contributing to climate change mitigation.

The transport sector is one of the major contributors to greenhouse gas emissions in the Philippines, which totaled 204.33 teragrams of CO2 in 2020, according to the Philippine Statistics Authority.

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