AGRICULTURE Secretary Emmanuel F. Piñol said he will lobby for the increase of coconut oil content in fuel to 5% from 2% for fuel used by the government, bringing the biofuel standard to B5 from B2.
Speaking to reporters, Mr. Piñol said, “We will be pushing for the increase of coconut oil used in diesel fuel, from B2 to B5, but only for government procurement, so that we will not stir the hornet’s nest as far as inflation is concerned. Our proposal involves fuel used by the military and government agencies. Our purpose is to absorb the excess copra,” he said, referring to the coconut product from which oil is extracted.
Mr. Piñol said that the Philippines has an excess of 300,000 metric tons of copra currently.
Earlier, Mr. Piñol announced that the Philippine Coconut Authority (PCA) will push for the increasing of B2 to B5 even for commercial use — a move which the Independent Philippine Petroleum Companies Association (IPPCA) and Senate chair for energy and economic affairs committees Sherwin T. Gatchalian opposed, citing the negative impact on consumers.
Mr. Piñol initially said that the increase of biofuel content will help the copra industry and also help the environment because biofuel burns more cleanly.
IPPCA said that with the adoption of the Euro 4 fuel standard, “there is no compelling reason to add or increase the biodiesel blend, given that the current diesel standard is already very clean. At the same time, increasing the blend will have an impact on the price of diesel. Why should motorists be made to subsidize another industry?”
Senator Gatchalian, meanwhile, said such a move is not advisable, as the added costs will come on top of the increase of fuel prices brought about by tax reform. — Reicelene Joy N. Ignacio
