Biofuel blending suspension bill unlikely to dent D&L business

D&L Industries Inc., the leading local company specializing in the manufacture of customized food ingredients, aerosols, oleo-chemicals and plastic additives, said Tuesday that a proposed measure allowing the temporary suspension of mandatory biofuel blending is unlikely to materially affect its business.

The company said that the current fuel pricing dynamics are falling well below the trigger set in the bill.

“Based on prevailing market conditions, the price differential between biodiesel-blended diesel and pure diesel remains well below the five percent threshold indicated in the proposed legislation,” said Alvin Lao, D&L president and chief executive officer.

No material impact

“As such, we do not expect any material impact under current market conditions,” he added.

At current pricing levels, the differential is estimated at 1.33 percent when diesel prices are around P90 per liter.

The proposal, now under deliberation in the Philippine Senate, would allow the President to suspend the locally sourced biofuel blending requirement under the Biofuels Act of 2006 for up to one year during periods of abnormal fuel price movements.