September 1, 2025 | 12:00am
MANILA, Philippines — The Division of Agriculture (DA) will advocate suspending the scheduled enhance in the usage of coconut oil for biodiesel manufacturing, citing the necessity to stabilize provide and costs as copra and cooking oil prices proceed to soar.
Agriculture Secretary Francisco Tiu Laurel Jr. stated the company would urge the federal government’s financial cluster to defer the implementation of the one-percentage level enhance within the coco-methyl ester (CME) mix mandate, at the moment set for October, to at the least 2026.
“The information I obtained is that will probably be delayed due to our manufacturing of coconut oil. And just lately, the worth of coconut oil went up,” Tiu Laurel stated on the sidelines of the primary day of the Philippine Poultry Present 2025 and the Worldwide Livestock, Dairy, Meat Processing and Aquaculture Exposition on the SMX Conference Heart in Pasay Metropolis.
The Biofuels Act requires the mixing of CME in diesel gasoline, with a gradual enhance within the mandated share.
Business teams and the Philippine Coconut Authority (PCA) earlier warned that pushing by with the October hike may divert coconut oil away from meals manufacturing and worsen the surge in costs already being felt in households and factories.
Newest knowledge launched by the PCA confirmed that farmgate copra costs had climbed to P58.10 per kilo as of March, greater than double the degrees recorded in early 2024.
Mill gate costs have been likewise reported at P75.34 per kilo, surpassing the earlier peak seen in 2022 throughout international provide disruptions.
Refined, bleached and deodorized coconut oil, broadly used for cooking, was priced at P172 to P182 per kilo on the mill gate degree.
Suppliers additionally reported common firm costs of P168.83 per liter, in contrast with a urged retail value of P173.90 per liter.
The PCA stated these will increase, if left unchecked, wouldn’t solely squeeze family budgets but additionally pressure industries that depend on coconut oil as an important enter.
The company added that it might step up coordination with the Bureau of Customs to forestall unlawful exports and guarantee home provide is prioritized.
Other than reviewing the biofuels mandate, the PCA has additionally proposed long-term methods below its Coconut Productiveness Masterplan, together with replanting, fertilization and intercropping initiatives.