DA seeks deferral of biodiesel hike to 2026

MANILA, Philippines —  The Department of Agriculture (DA) will recommend postponing the scheduled increase in the use of coconut oil for biodiesel production, citing the need to stabilize supply and prices as copra and cooking oil costs continue to soar.

Agriculture Secretary Francisco Tiu Laurel Jr. said the agency would urge the government’s economic cluster to defer the implementation of the one-percentage point increase in the coco-methyl ester (CME) blend mandate, currently set for October, to at least 2026.

“The news I got is that it will be delayed because of our production of coconut oil. And recently, the price of coconut oil went up,” Tiu Laurel said on the sidelines of the first day of the Philippine Poultry Show 2025 and the International Livestock, Dairy, Meat Processing and Aquaculture Exposition at the SMX Convention Center in Pasay City.

The Biofuels Act requires the blending of CME in diesel fuel, with a gradual increase in the mandated percentage.

Industry groups and the Philippine Coconut Authority (PCA) earlier warned that pushing through with the October hike could divert coconut oil away from food production and aggravate the surge in prices already being felt in households and factories.

Latest data released by the PCA showed that farmgate copra prices had climbed to P58.10 per kilo as of March, more than double the levels recorded in early 2024.

Mill gate prices were likewise reported at P75.34 per kilo, surpassing the previous peak seen in 2022 during global supply disruptions.

Refined, bleached and deodorized coconut oil, widely used for cooking, was priced at P172 to P182 per kilo at the mill gate level.

Suppliers also reported average company prices of P168.83 per liter, compared with a suggested retail price of P173.90 per liter.

The PCA said these increases, if left unchecked, would not only squeeze household budgets but also strain industries that rely on coconut oil as an essential input.

The agency added that it would step up coordination with the Bureau of Customs to prevent illegal exports and ensure domestic supply is prioritized.

Apart from reviewing the biofuels mandate, the PCA has also proposed long-term strategies under its Coconut Productivity Masterplan, including replanting, fertilization and intercropping initiatives.