Chemrez Technologies Inc. (CTI), the country’s largest biofuel producer, is pressing for a clearer timeline on the resumption of higher biodiesel blends to allow sufficient lead time for preparation.

“The industry awaits a more definite date for the resumption of the B4 mandate from the NBB. It needs at least five months in advance to prepare for implementation,” Chemrez Technologies Inc. president Dean A. Lao Jr. said on Friday.

Lao acknowledged the “sensible recommendations to postpone” the higher blend rollout made by the National Biofuels Board (NBB) and the Philippine Coconut Authority, but emphasized that “the progression towards B5 remains a sound and sustainable solution for the Philippines to attain its economic, environmental, and health goals.”

Under the Biofuels Act of 2006, coco methyl ester (CME) content in local diesel is supposed to rise by one percent annually. However, the blend has remained at three percent. The law requires that all biodiesel components be locally sourced to reduce fuel imports and support rural livelihoods.

Energy Undersecretary Alessandro O. Sales confirmed at a Friday briefing that the rollout of higher biodiesel blends in October will be postponed to avoid additional price pressure on motorists.

“The NBB met two weeks ago and the board decided to pass the resolution to suspend the implementation of the B4 blend in October 2025 as well as the implementation of the B5 blend in October 2026,” Sales said.

Sales, who oversees the DOE’s Oil Industry Management Bureau, pointed to the steep increase in coconut oil prices, the main feedstock for CME, as the key reason for the decision.

“At the beginning of 2024, the price of coconut oil in the international market was about $1,100 per metric ton. At the time of the decision of NBB, the price was over $3,000 per metric ton,” he said, adding that although prices have dipped slightly, it remains “a significant increase.”

“The increase translates to higher cost of diesel at the pump because of the mandate. And increasing the mandate now to B4 would add to this price pressure,” he added.

Sales, however, clarified that the resolution, now being routed for signature by member agencies, does not abandon the country's plan to increase the biodiesel blend but allows time for further study.

“The intent to increase the blend is still there,” he said, noting that the NBB will conduct periodic market and logistics assessments.