The Department of Energy (DOE) is imposing stricter monitoring of the increased biodiesel blend to ensure compliance with the mandated coconut methyl ester (CME) content in diesel fuel.
One month after implementation of the increased blend, the DOE, through its Oil Industry Management Bureau (OIMB), will expand inspections to include bulk depots and gasoline stations. This aims to evaluate compliance with the mandated three percent CME blend in diesel fuel sold to retailers.
DOE Undersecretary Alessandro O. Sales explained that this effort will ensure a seamless transition, stating, “Oil companies have been given ample time to make this adjustment, and the OIMB will now conduct inspections at bulk depots to enforce compliance. Timely action at the depot level is crucial to maintaining an up-to-date and efficient fuel distribution chain.”Those who fail to comply with the regulation face a P200,000 fine, with repeat offenders facing a P300,000 fine and potential revocation of their accreditation or registration.
According to the DOE, non-compliance with the biofuel share adjustment and possession of a blend that fails to meet the Philippine National Standards (PNS) will be considered adulteration.
Since the initial one percent CME blend was implemented in 2007, greenhouse gas (GHG) emissions have gradually decreased. The DOE noted that carbon dioxide emissions fell to 7,433 kilotons between 2007 and September 2024.
The CME blend increased to two percent in 2011, and another increment was implemented last month, bringing it to three percent.
“This reduction will play a crucial role in supporting the country’s Nationally Determined Contribution commitments to combat climate change,” the DOE stated.
Biodiesel combustion produces fewer harmful emissions than conventional diesel, leading to improved air quality and potentially reducing respiratory problems.
Beyond environmental benefits, the DOE stated that the local biofuels industry generated 3,260 jobs as of last year, benefiting coconut farmers, biodiesel producers, and others in the coconut industry.
An estimated 900 million coconuts will be needed to produce the CME required for the new biofuel share, translating to roughly 100 to 120 million liters of CME.
“These green jobs beneficiaries are also entitled to benefits under the Department of Labor and Employment's Social Amelioration and Welfare Program including death and maternity benefits, livelihood assistance, training and education assistance, social protection and welfare benefits, emergency assistance, and funding for socio-economic projects,” the DOE added.
The DOE also highlighted consumer benefits from the increased biofuel blend. A five percent CME blend is estimated to save P5 per liter based on the average fuel pump price of P54.7 in September.
The next biofuel increase is scheduled for October 2025, with a marginal increase expected the following year.