The Philippine Coconut Authority (PCA) says it does not support proposals to fully suspend the country’s biodiesel blending program, despite rising global fuel prices linked to the Middle East conflict.
In a statement on Thursday, the PCA said a “balanced and calibrated” approach is needed. While the scheduled increase from a 3 lercent to 5 percent biodiesel blend (B5) has been debated, the agency prefers keeping the current 3 percent blend (B3) or, if necessary, returning to 2 percent as a cautious response to market conditions.
The PCA noted that the local industry has the capacity to produce up to a 7 percent blend (B7) if market conditions and policies allow. The program supports domestic demand for coconut oil and provides income for coconut farmers, though current pricing practices mean the direct benefit to farmers is limited.
The agency warned that replacing locally produced coconut methyl ester (CME) with imported palm methyl ester (PME) could lower copra and coconut oil prices, threaten the viability of 14 CME production facilities, endanger thousands of jobs, and have negative environmental effects.
The Philippine Biodiesel Association (TPBA) also urged lawmakers to strengthen, not suspend, the Biofuels Act of 2006. TPBA said local biodiesel is the most reliable buffer against global fuel price shocks, and the industry is ready to supply up to B7 blends using locally sourced coconut oil.
According to the Philippine Statistics Authority, the country produced 14.51 million metric tons of husked coconuts in 2025, slightly up from 14.5 million in 2024.
