‘Biofuels ready as buffer vs prolonged oil crisis’

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March 17, 2026 | 12:00am

MANILA, Philippines — Local biofuels may serve as a strategic buffer for the country against potential prolonged disruptions in fuel imports due to the global oil crisis, the Philippine Biodiesel Association said.

TPBA said locally produced biofuels remain the Philippines’ “most reliable defense” against global price shocks stemming from its heavy reliance on imported fuels.

“Today, 14 biodiesel facilities utilize 100 percent locally sourced coconut oil to produce coco methyl ester (CME), a cleaner, environmentally friendly, locally sourced biofuel that is used as the country’s alternative to fossil fuel-based diesel,” the group said in a statement yesterday.

Diesel prices are on track to top P100 per liter as the US?Israel war with Iran enters its third week, extending disruptions to global fuel supplies due to the continued closure of the Strait of Hormuz.

Before the tensions escalated, the strait handled about 20 percent of the world’s oil and gas shipments.

If the crisis continues, it could deplete the country’s existing fuel stockpiles, which are expected to last only until next month.

“The Biofuels Act was enacted two decades ago with the foresight to prepare the nation for this very crisis,” TPBA executive director Ramon Taniola said.

Under the law, all liquid fuels for motors and engines sold in the country should contain locally sourced biofuel components.

The government mandated a three-percent (B3) CME blend in 2024. The blend was supposed to gradually increase to B4 last year and further to B5 by October, but the hike was suspended due to high costs of coconut oil.

TPBA said the industry has invested enough capacity and is ready to supply up to a B7 biodiesel blend if mandated.

“We must now, more than ever, protect the progress we have made toward cleaner air, climate readiness and import independence,” Taniola said.