The Department of Agriculture (DA) has endorsed Resolution No. 03, Series of 2026, calling for the immediate implementation of the 5 percent coconut methyl ester (CME) biodiesel blend or B5. The proposal has been forwarded to the Senate and the Department of Energy (DOE).
Originally, the blend was set to rise from the current 3 percent to 4 percent by October 2025 and 5 percent by October 2026. The transition was temporarily paused in the past due to a sharp increase in global coconut oil prices.
Authorities said that current market conditions are now suitable to resume the shift. Under the Biofuels Act of 2006, the program aims to support the local coconut industry, improve energy security, and reduce environmental impact. CME is biodegradable, non-toxic, and produces lower emissions compared to conventional diesel.
Agriculture Secretary Francisco Tiu Laurel Jr. noted that expanding the blend will help stabilize prices and increase income for an estimated 2.5 to 3.5 million coconut farmers. It will also create jobs and maximize local production capacity.
DOE Undersecretary Alessandro Sales said the agency will assess supply stability and the readiness of refineries before making a final decision. Meanwhile, the Philippine Biodiesel Association confirmed that the local industry is capable of supplying up to 7 percent blend if a consistent market is established.
