IPPCA Opposes Increase in Diesel Biofuel Component

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November 12, 2018

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by R.J.N. Ignacio (Business World) THE Independent Philippine Petroleum Companies Association (IPPCA) opposed the plan of the Philippine Coconut Authority (PCA) to increase the biofuel component in diesel to B5 from B2.

“With Euro 4, there is no compelling reason to add or increase the biodiesel blend, given that the current diesel standard is already very clean,” IPPCA said in a statement sent to BusinessWorld.

“At the same time, increasing the blend will have an impact on the price of diesel to go up. Thus, why should motorist made to subsidize another industry?,” according to IPPCA.

Department of Agriculture (DA) Secretary Emmanuel F. Piñol earlier said the PCA board of governors has passed a resolution addressed to President Rodrigo R. Duterte to direct the National Biofuels Board (NBB) to raise the biofuel requirement from B2 to B5 to help the copra industry.

Mr. Piñol said fuel prices will rise by about P0.30 once the shift to B5 from B2 is implemented, while noting this would mean cleaner air and more mileage for vehicles. READ MORE

PCA to seek implementation of 5% coconut content in diesel (Business World)

Excerpt from Business World: AGRICULTURE Secretary Emmanuel F. Piñol said that the board of governors of the Philippine Coconut Authority (PCA) will recommend to President Rodrigo R. Duterte to fully implement a law increasing the coconut content of diesel to 5%.

He said the move to a B5 standard, with 5% consisting of vegetable oil, will help support copra prices. The current level of implementation is B2, or 2% vegetable oil.

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“The board passed a resolution addressed to the President to direct the National Biofuels Board to increase the biofuel component from B2 to B5. This is expected to effectively absorb a huge portion of copra right now in the market,” Mr. Piñol told reporters after his meeting with the PCA on Thursday.

Mr. Piñol said that he is expecting opposition, but explained that this is in the law and should be implemented. He said that increasing the biofuel requirement improve air quality and mileage.

“You can always expect opposition every time fuel prices increase. What we are recommending is in the law. Even the economic managers may oppose that but it is in the law,” Mr. Piñol said, referring to the Biofuels Act of 2006.

“We will ask the President for a directive to the National Biofuels Board to implement that. With this development, I think the price of copra will rise,” Mr. Piñol added.

The unimplemented Biofuels Act of 2006 requires all diesel to be blended with 5% coco methyl ester (CME), to stabilize copra prices. The biodiesel requirement should have taken effect in 2015. READ MORE

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