Biodiesel measure scrutinization sought

The Philippine Biodiesel Association (PBA) is urging lawmakers to reconsider a proposal to suspend the mandatory use of coconut-based biodiesel, cautioning that halting the mandate would negatively impact motorists’ savings, farmers’ incomes and public health.

In a statement, the PBA called on Congress to fully evaluate the consequences of House Bill 4151, also known as the “Murang Langis Act.” The bill proposes suspending the coco-biodiesel mandate whenever blended diesel fuel becomes 5 percent or more expensive than pure diesel.

The PBA argued that this proposed price trigger oversimplifies the market, asserting that blended fuel is not consistently costlier and has, at times of global oil volatility, matched or even undercut pure diesel prices.

It also stressed that the current 3 percent blend (B3) adds only 71 centavos per liter over the B2 blend, an increase of less than 2 percent. The group added that even a shift to a 5 percent blend (B5) would raise costs by only another 3 percent.

The PBA said these increases are routinely offset by better fuel efficiency, citing studies by the Department of Energy and the University of the Philippines-National Center for Transportation Studies that show fuel efficiency gains of 6 percent to 10 percent.

These gains, the group calculated, translate to an estimated P17 billion to P32.6 billion in annual savings for motorists.