The Department of Energy (DOE) has postponed the planned increase of the mandated coconut‑oil biodiesel blend due to soaring international coconut oil prices, energy officials confirmed on Friday. 

Under the Biofuels Act of 2006, the blend of coconut methyl ester (CME) in local diesel fuel was set to rise to 4% (B4) in October 2025, followed by a 5% blend (B5) in October 2026. However, the National Biofuels Board (NBB), chaired by the DOE, recently passed a resolution to suspend the rollout of B4 this year, with B5 to follow suit a year later 

As reported in a Rappler article, according to DOE Undersecretary Alessandro Sales, coconut oil prices skyrocketed to around USD3,000 per metric ton on the global market, prompting concerns over the potential ripple effect on diesel pump prices 

Though prices have eased slightly below the USD3,000 mark, they remain substantially elevated 

Outgoing Energy Secretary Raphael Lotilla attributed the price spike to growing international demand for coconut oil. “Europe, for example, has curtailed the use of palm oil … this has driven the price of coconut oil upward,” he explained, highlighting shifting global consumption trends 

Lotilla, who has since transitioned to the environment department, emphasized that the government is already taking steps to address supply constraints. These include a long-term plan to plant more coconut trees over the next five to seven years to stabilize domestic production 

Despite the postponement, DOE officials stressed that the government remains committed to the gradual increase of biofuel blending in accordance with the law. The NBB resolution is currently being processed for final signatures 

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