The Department of Energy (DoE), through its Oil Industry Management Bureau (OIMB), wants local companies to strictly comply with the new 3 percent coconut methyl ester (CME) biodiesel blend in diesel — a move that will significantly help greenhouse gas emissions.

The DoE reported on Friday that biodiesel use displaced an estimated 7,433 kilotons of carbon dioxide equivalent emissions through September. 

The current 3 percent CME blend alone is projected to replace approximately 300 million liters of pure diesel annually, reducing emissions by an estimated 298.2 kilotons of carbon dioxide.

The agency added that the increased CME blend not only reduces harmful particulate and sulfur dioxide emissions but also benefits coconut farmers and local biofuel producers. 

Thus, the DoE expects the demand for biodiesel will require an additional 900 million coconuts annually, supporting rural employment and income. 

Since last year, the biofuel industry has created over 3,200 jobs, benefiting from DoE and Department of Labor social programs.

Consumers may also see improved fuel efficiency, with a potential 10 percent increase in mileage at a higher CME blend, translating to savings of approximately P5.00 per liter based on recent fuel prices. 

Non-compliant firms face fines 

Undersecretary Alessandro O. Sales, who oversees the OIMB, emphasized that oil companies have had ample time to adjust to the new blend, and inspections will ensure smooth compliance. 

“Timely action at the depot level is crucial to maintaining an up-to-date and efficient fuel distribution chain,” Sales said. 

Initial inspections will target bulk depots, with plans to expand to gas stations in the coming weeks. 

Non-compliance penalties are set at P200,000, with repeat offenses carrying fines of P300,000 and potential revocation of accreditation.

Since 2007, biofuel integration has contributed to significant environmental gains. 

The CME blend mandate will rise gradually, with targets set to 4 percent in 2025 and 5 percent by 2026.