The Department of Energy (DOE) has announced a postponement of the scheduled increase in the mandated coconut-oil biodiesel blend due to a sharp rise in international coconut oil prices, energy officials confirmed on last Friday.
Under the Biofuels Act of 2006, the required blend of coconut methyl ester (CME) in local diesel was set to increase to 4% (B4) starting October 2025, with a further rise to 5% (B5) planned for October 2026. However, the National Biofuels Board (NBB), chaired by the DOE, recently approved a resolution to suspend the implementation of the B4 blend this year, delaying the B5 rollout accordingly.
DOE Undersecretary Alessandro Sales cited a dramatic surge in global coconut oil prices, which have soared to approximately USD 3,000 per metric ton. This spike has raised concerns over the potential impact on diesel fuel prices at the pump. While prices have slightly decreased below the USD 3,000 level, they remain significantly elevated.
Outgoing Energy Secretary Raphael Lotilla attributed the price hike to increasing international demand. “Europe, for example, has curtailed the use of palm oil, which has driven the price of coconut oil upward,” Lotilla explained, highlighting shifting global consumption patterns.
Now serving as Environment Secretary, Lotilla noted that the government is proactively addressing supply challenges through a long-term strategy to plant more coconut trees over the next five to seven years, aiming to stabilize domestic coconut oil production.
Despite the delay, DOE officials reaffirmed the government’s commitment to progressively increasing biofuel blends in line with existing legislation. The NBB’s resolution to suspend the blend increase is currently undergoing final approval.
