D&L Industries Inc. does not expect any material impact on its business under current market conditions following the filing of a bill in Congress that would allow the temporary suspension of mandatory biofuel blending in the Philippines.

The firm informed the Philippine Stock Exchange (PSE) on Tuesday, March 17, that the proposed measure, currently being deliberated in the House of Representatives, would allow the President to temporarily suspend the locally sourced biofuel blending requirement under the Biofuels Act of 2006 for up to one year during periods of abnormal fuel price movements.

The bill, certified as urgent by Ferdinand R. Marcos Jr., aims to provide the government with additional flexibility to stabilize pump prices amid volatility in global oil markets.

Importantly, the bill in its current form allows suspension only if blended fuel prices are at least five percent higher than pure fuel.

“Based on prevailing market conditions, the price differential between biodiesel-blended diesel and pure diesel remains well below the five-percent threshold indicated in the proposed legislation. As such, we do not expect any material impact under current market conditions,” D&L President and Chief Executive Officer (CEO) Alvin Lao said.

At current pricing dynamics, the differential is estimated at approximately 1.33 percent when diesel prices are around ₱90 per liter.

“The proposed measure is intended as a temporary price stabilization mechanism and does not repeal the Biofuels Act or alter the country’s long-term policy direction toward renewable fuels. We therefore expect the long-term fundamentals of the biodiesel industry to remain intact,” Lao noted.

D&L’s biodiesel operations are carried out through subsidiary Chemrez Technologies Inc., one of the country’s leading producers of coconut-based biodiesel.

“Chemrez has the flexibility to redirect production toward higher-value coconut-based oleochemical exports should domestic biodiesel demand temporarily soften. Global demand for sustainable specialty ingredients remains robust. The operational flexibility and resilience we have built over the years allow us to navigate evolving market conditions while continuing to deliver stable growth,” Lao said.

He added that, “We appreciate that policymakers recognize the importance of protecting the local biodiesel industry, which supports the livelihoods of millions of Filipino coconut farmers and contributes meaningfully to the country’s sustainability and energy security goals.”

Based on the discussions so far, Lao said there appears to be strong appreciation for ensuring that the domestic agro-industrial value chain for biofuels remains viable even as the government seeks to manage fuel price volatility.

“We remain committed to engaging constructively with policymakers and industry stakeholders as discussions on the proposed measure progress,” he concluded.