June 16, 2025

Emmanuel "Manny" F. Piñol

Official Website

High diesel prices? Govt Should Revisit Bio-Diesel Program

As the prices of diesel fuel increased to as high as P75 per liter, it would be a wise move on the part of government to revisit the Bio-Fuel Program and increase the coconut methyl ester (CME) component of diesel sold in the country from 2% to 10%
The Biofuels Act of 2006 or RA 9367 signed by President Gloria Macapagal-Arroyo in March 2010, “aims to reduce the country’s dependence on imported fuels with due regard to the protection of public health, the environment, and the natural ecosystems consistent with the country’s sustainable economic growth.”
Coconut, Oil Palm and Ethanol from sugarcane are among the easily accessible sources of bio-fuel for the Philippines but lobbying from big business had stunted the full implementation of the law with the CME component remaining at 2%.
As early as 10 years ago, Coconut and Palm Oil farmers, who suffered from very low prices of their produce, had lobbied for an increase to at least 5% of the CME component of the bio-diesel in the Philippines.
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The Department of Energy, however, thumbed down the proposal citing higher diesel prices as a result of the increase in prices of bio-diesel.
Not even the arguments that the use of coco and palm oil in the diesel fuel would contribute to a cleaner air and added mileage convinced the DOE to consider the proposals.
With the skyrocketing diesel fuel prices now, increasing the CME content of bio-diesel in the country would be a wise move.
The CME component could be increased to as much as 10%, still low compared to other ASEAN countries, but enough to cushion the high prices of diesel.
It will not only stabilize the prices of diesel but also create a huge market for Coconut and Palm Oil and sugarcane Ethanol.