To promote economic growth, foster environmental stewardship, and support cleaner energy utilization, the implementation of a 3% coco methyl ester (CME) blend in all diesel fuel sold nationwide will take effect on 01 October 2024. This marks an increase from the current 2% CME blend. The CME blend will further increase to 4% by 01 October 2025 and to 5% by 01 October 2026.
This increase in the CME blend is expected to benefit coconut farmers, biodiesel producers, and other stakeholders in the coconut industry with around 900 million additional coconut to produce 100 to120 million liters of CME requirements to satisfy a 1% mandatory increase in CME blend.
Consumers will benefit with an increase in mileage from the average of 10 kilometers per liter of diesel to less than 11 kilometers. An on-road test covering 30,000 kilometers with a 5% CME blend demonstrated an approximate 10% improvement in fuel mileage. Based on the average diesel pump price of PhP54.70 per liter during the period of 24 to 30 September 2024, this results in estimated savings of PhP0.50 per liter. These savings are expected to offset any potential increase in pump prices due to the 1% rise in the CME blend.
Additionally, with cars being a major source of pollution, including harmful particulate matter that affects public health, increasing the use of environmentally friendly biodiesel offers a crucial solution. This shift will not only help mitigate climate change but also contribute to the protection of public health. ###