DOE Announces Higher Biodiesel Blend Starting October

The Department of Energy (DOE) announced that the downstream oil industry will increase its biodiesel mix beginning October this year.

The mandatory 1-percent increase in CME blend will require an additional 900 million nuts as feedstock to produce 100 million to 120 million liters.

Under Department Circular 2024-05-0014, the required coco methyl ester (CME) blend will be 3 percent for all diesel fuel sold across the country starting October 1. This will gradually increase to 4 percent by October 1, 2025, and to 5 percent by October 1, 2026.

DOE Secretary Raphael Lotilla emphasized, "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."

He added that the higher CME blend will create additional market opportunities for local coconut farmers, biodiesel producers, and other stakeholders in the coconut industry.

The mandatory 1-percent increase in CME blend will require an additional 900 million nuts as feedstock to produce 100 million to 120 million liters, he 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 PHP4.17 per liter of diesel," the DOE chief pointed out.

He further noted that downstream oil industry players have the option to increase the ethanol blend in all gasoline fuel to 20 percent from the current 10 percent, which could reduce domestic pump prices by approximately PHP3.21 per liter.