Industry group backs hike to 4% biodiesel mix in 2026

MANILA, Philippines — A local association of coconut producers is backing the government’s plan to introduce a higher biodiesel blend in the domestic fuel mix starting in 2026, signaling strong support from a $2.6-billion sector that stands to benefit from greater demand for copra.

The United Coconut Association of the Philippines (UCAP) said it welcomes the introduction of the four-percent biodiesel mandate, which had been deferred by the government due to the need to stabilize supply and prices as copra and cooking oil costs continue to soar.

“I think it’s a very sensible move. If we did proceed with the B4, we don’t know how the supply chain might react. But I think maintaining it at this level gives us some time to prepare,” UCAP chairman Dean Lao said during the opening of the World Coconut Congress 2025 at the SMX Convention Center in Pasay City last Wednesday.

B4 is shorthand for a four-percent biodiesel blend in diesel fuel as mandated under the Biofuels Act. The biodiesel blend is currently at three percent coco methyl ester (CME) level.

Coconut oil is the key raw material for biodiesel production.

The process starts with coconuts, which are dried into copra, then pressed into coconut oil. This oil is further processed into CME, the component blended with diesel to meet the biodiesel requirement.

While supportive of the policy, Lao said discussions often overlook key benefits.

“One thing that is always left out in the information sharing of the Department of Energy is that they always see biodiesel as an additional cost. But they don’t see the benefits,” he said.

“There’s a very comprehensive test that was done. When you added the biodiesel in, the mileage improvement gained 10 percent,” he said.

The Philippine Coconut Authority (PCA) earlier in June cautioned that moving ahead with the October schedule for the biodiesel hike could siphon coconut oil away from food production and worsen the surge in cooking oil prices being felt by households and factories.