November 10, 2024 | 12:00am
MANILA, Philippines — Oil companies found non-compliant with the increased biodiesel blend could face heavy fines and risk having their accreditation revoked, according to the Department of Energy (DOE).
The government has mandated a three-percent (B3) coco methyl ester (CME) blend in all diesel fuel sold nationwide since last month, marking an increase from the two percent implemented previously.
As such, the DOE, through the Oil Industry Management Bureau (OIMB), is ramping up efforts to ensure full compliance with the mandated blend, one month after its implementation.
The DOE warned that non-compliance and possession of a biofuel blend that fails to meet national standards are both considered adulteration, resulting in a penalty of P200,000.
For repeat offenders, a fine of up to P300,000 will be imposed, which may also lead to the revocation of their accreditation or registration.
“Oil companies have been given ample time to make this adjustment, and the OIMB will now conduct inspections at bulk depots to enforce compliance,” said Energy Undersecretary Alessandro Sales, who also supervises the OIMB.
Timely action at the depot level, Sales added, is important in maintaining a streamlined and efficient fuel distribution chain.
In the coming weeks, the DOE plans to gradually expand its inspections to include gasoline stations.
Citing sales data from accredited local biofuel producers for the period April 2007 to September 2024, the DOE reported a significant reduction in greenhouse gas emissions, avoiding a total of 7,433 kilotons of carbon footprint.
This, the agency said, highlights the positive impact of biofuels in mitigating greenhouse gas emissions.
Pursuant to the Biofuels Act of 2006, the country implemented B1 in 2007 and increased the blend to B2 in 2011.
The law mandates the use of coconut oil as feedstock for the production of CME or coco-biodiesel.
With a higher biodiesel blend, the DOE expects a major boost in demand for coconut farmers, biodiesel producers and other stakeholders in the coconut industry.
In real terms, an estimated 900 million additional coconuts will be required to produce the extra CME needed to meet the mandated blend percentages.
This translates to an additional 100 to 120 million liters of CME supply.
On the consumer side, the higher CME blend is expected to improve mileage, increasing it from the average of 10 kilometers per liter of diesel to less than 11 kilometers.
Following this year’s hike in biodiesel requirements, the CME blend is set to further increase to B4 in October 2025 and B5 in October 2026.
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