The proposed suspension of the B4 biodiesel blend rollout, raising the coco methyl ester (CME) content in diesel from 3 percent to 4 percent by October 2025, has triggered mixed reactions among coconut industry stakeholders, underscoring tensions between energy policy goals and economic pressures.
The Philippine Coconut Authority (PCA) announced the deferral, citing inflation concerns tied to rising coconut oil prices. DOE undersecretary Alessandro Sales said the price of coconut oil spiked from US$1,100 to over US$3,000 per metric ton in 2024, prompting the National Biofuels Board (NBB) to delay both the B4 and B5 (set for 2026) implementation.
Federation of Free Farmers (FFF) chairman Leonardo Montemayor criticized the deferment, warning it undermines the Biofuels Act and sacrifices farmers’ welfare. “The government is not serious… Farmers will again be sacrificed under the mantra of ‘preventing’ inflation,” he said.
However, Philippine Chamber of Agriculture and Food Inc. president Danilo Fausto supported the suspension, urging readiness before scaling up. “The decision is appropriate… the coconut industry must prove it can sustain the policy,” he said.
Chemrez Technologies Inc. president Dean Lao Jr. also backed the postponement but emphasized the need for a clear timeline. “The industry awaits a more definite date… B5 remains a sound and sustainable solution,” he stated. Chemrez is the country’s largest CME producer.
Energy Secretary Raphael Lotilla, who chairs the NBB, is expected to finalize the suspension soon. The delay raises questions about the pace and consistency of the country’s biofuels roadmap amid fluctuating commodity prices and climate-related production constraints.
