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May 22, 2024

DOE Mandates Higher Biodiesel Content Starting October

The Department of Energy (DOE) is mandating local petroleum players to use higher biodiesel blends starting this October until 2026.

From the current two percent, the DOE will mandate a staggered increase to three percent in October, four percent in 2025, and five percent in 2026.

Biodiesel, derived from coconut oil (coco methyl ester) is seen to boost the local coconut industry and promote cleaner emissions.

At the same time, the DOE is encouraging oil players to increase the ethanol blend in their gasolines from E10 (10 percent) to E20 (20 percent).

Whereas biodiesel has to be sourced locally, the DOE will allow firms to import a portion of their ethanol since imported ethanol is cheaper than local ethanol.

The move, the DOE says, will bring the prices of gasoline products by around P 3 per liter.

Making E20 gasoline fuel is completely optional, reminds the DOE.

Generally, the five percent biodiesel blend does not pose great concern to vehicles; something that’s been confirmed by carmakers and industry exports.

However, E20 gasoline may not be compatible with all vehicles as the higher alcohol content might wear out rubber parts. It will also entail service stations to install additional or retrofit existing fuel tanks to handle E20 gasoline.

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