AGRICULTURE Secretary Francisco Tiu Laurel Jr. has endorsed to the Senate and the Department of Energy (DOE) a policy resolution calling for an immediate shift to a 5-percent coco-biodiesel blend (B5) from the current 3 percent, the Department of Agriculture (DA) said on Monday.
The decision, via Resolution 03, Series of 2026, was passed by the Philippine Council for Agriculture and Fisheries-National Sectoral Committee on Coconut and is backed by the private sector. Tiu Laurel transmitted it to Senate Agriculture Committee chairman Francis Pangilinan and Energy Secretary Sharon Garin, who also chairs the National Biofuels Board (NBB).
The shift is mandated under Republic Act 9367, or the Biofuels Act of 2006, which promotes blending coconut methyl ester (CME) — a biodegradable biodiesel derived from coconut oil — into petroleum products. CME emits significantly less sulfur and greenhouse gases than conventional diesel.
The law also aims to revitalize the coconut industry, advance environmental sustainability, and enhance energy security.
The NBB previously imposed a temporary halt to the transition following a 300-percent spike in international coconut oil prices, but the DA said current market conditions now allowed it to proceed.
While B5 is a long-term market intervention rather than an immediate remedy for high fuel prices — with local prices expected to take six to 12 months to stabilize amid global supply chain disruptions — industry experts consider it a crucial step.
The blend’s expansion is seen stabilizing agricultural prices and raising incomes for an estimated 2.5 to 3.5 million coconut farmers.
“This is more than a step toward meeting international standards. It is a meaningful investment in the future of millions of Filipino farmers, workers, and families who rely on the coconut industry for their livelihood,” Tiu Laurel said, adding that the shift would also reduce dependence on imported fuels.
Philippine Coconut Authority Administrator Dexter Buted likewise expressed support, saying the resolution could significantly boost the coconut industry and the livelihoods it sustains.
