PCA pushes for 5% biodiesel blend after years of delay
The Philippine Coconut Authority (PCA) is calling on the National Biofuels Board (NBB) to finally implement the increase of Coco Methyl Ester (CME) content of biodiesel currently sold in the domestic market after years of delay.
The present blend of biodiesel now in the country consists only of two percent CME and 98 percent regular diesel.
“The increase could effectively support our coconut farmers and farmworkers whose livelihoods are threatened by the declining prices of crude coconut oil (CNO) in the international market,” said PCA Administrator Romulo J. de la Rosa.
The price of CNO has declined by over 40 percent in the last few months because of a glut in supply in the world market of vegetable oils. From a high of US$ 1,850 per ton, it was selling at its 16-month low of US$ 1,100 per ton last week. The weakening copra and CNO world prices could further reduce the already low income of coconut farmers and farmworkers in the country.
De la Rosa explained that the increase in the CME content of biodiesel can be undertaken on a staggered basis.
“The first increase can be from two percent to three percent starting August 1 this year,” he said.
“This means that the biodiesel blend to be sold in the domestic market should have three percent CME and 97 percent regular diesel starting August 1,” he added.
The recommended August 1 deadline to increase the biodiesel CME content to three percent gives oil industry players ample time to procure their CME supplies and reset their blending ratios.
The PCA is also pushing the NBB to decide before December 2018 whether to further increase the blend to five percent CME content or maintain the three percent until 2020.