The government is considering suspending the scheduled increase in coco methyl ester (CME) biodiesel blend from 3 percent to 4 percent by 1 October this year as scheduled, the Philippine Coconut Authority (PCA) revealed Wednesday.
PCA administrator Dexter Buted said the move is likely due to inflation concerns. “We can only speculate the reason why it is being suspended. Most likely because of inflation concerns,” Buted told reporters, adding that the decision ultimately lies with the Department of Energy (DOE).
DOE Oil Industry Management Bureau Director Rino Abad clarified that no official recommendation has been made, pending the Energy Secretary’s approval.
The CME blend was raised to 3 percent last year, with further hikes to 4 percent in 2025 and 5 percent in 2026 scheduled. The increase is projected to support coconut farmers and biodiesel producers, requiring approximately 900 million additional coconut nuts for every 1 percent blend hike.
The potential delay raises concerns for stakeholders in the coconut industry, who were anticipating demand growth and economic benefits from the expanded biodiesel mandate.
