DOE mandates raising biodiesel blend to 3% starting this October

THE Department of Energy has issued a circular on higher biodiesel blend to three percent starting October this year.

The Biofuels Act of 2006 mandates that all liquid fuels for motors and engines contain locally sourced biofuel components. When Republic Act 9367 was signed into law, the blending of one percent coco-biodiesel or CME in local diesel started. It was last increased to two percent in 2007. There has been a clamor from the biofuels industry players to increase the blend ethanol blend for gasoline to 20 percent. However, the lack of local feedstock to increase production remains a challenge.

In October last year, Lotilla, who also chairs the Biofuels Board, said increasing ethanol blend to 20 percent may result in more than one-peso reduction in line pump price.

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