The current state of fuel prices in the Philippines has been a mixed bag. There will be weeks it shoots up followed by small rollbacks. It’s a cycle that repeats over a month and one that most of us are probably used to by now.
This year so far, fuel has been more expensive compared to the start of 2024. In a bid to curb that, the Department of Energy (DOE) has announced the implementation of higher biofuel blends for both locally available gasoline and diesel effective October 1, 2024.
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The DOE says that increasing the biofuel mix for both gas and diesel will reduce prices at the pumps. One of the goals is, at the very least, to keep fuel prices more stable amid volatile global oil prices. Increasing the mix could also potentially mean more ‘affordable’ prices per liter.
The current biofuel mix in the Philippines is E10 for gasline (10% ethanol) and B2 for diesel (2% coco methyl ester or CME) as part of the Biofuels Act of 2006. That said, the DOE has allowed local oil players to offer E20 petrol (20% ethanol) over the years. Diesel, on the other hand, has stayed at 2% CME since biofuel mixes were mandated in the country as far back as 2007.
The new ruling might not affect gasoline as much, but it will be a significant one for diesel. Beginning October, the government will require B3 diesel (3% CME) at pumps across the land. That’s not all: The following year, that number will go up to B4 and set to reach B5 by 2026.
