The Department of Energy agreed to endorse the proposal of the Federation of Philippine Industries to allow the use of palm oil in the country’s fuel mix, an industry leader said Friday.
The group met recently with the DOE to discuss the possible use of palm oil for biodiesel production amid skyrocketing fuel prices.
“Diesel is the one being used in public transport and in the delivery of goods, so it affects the masses. The use of the cheaper palm oil, therefore, will serve as a permanent solution instead of the government having to periodically adjust excise taxes just to cushion the impact of higher crude prices. This is a solution where no sector will be hurt, even the government,” said PFI president Jess Arranza.
FPI said in the meeting the use of palm oil, instead of coconut oil, in the diesel mix would result in multiple benefits that could be felt by motorists, local industries and farmers.
Arranza said the application is now pending for approval at the National Biofuels Board, after the DOE agreed to endorse the proposal to the board.
Arranza said palm oil-derived diesel additive would bring down the price of the fuel as palm oil is cheaper by around $300 to $500 than coconut oil per ton in the world market.
He said the volume of coconut oil that would be released or freed from the diesel mix could be utilized for higher-value products, including virgin coconut oil, which proved effective against enveloped viruses like the SARS-CoV-2 and as a treatment for Alzheimer’s disease.
The DOE reportedly agreed to reserve coconut oil for premium and higher-value purposes such as for food and medical applications which would be good for the coconut industry.
The FPI said some unscrupulous traders were already importing palm oil for use in biodiesel mix, although they were declaring their diesel products as containing coconut oil still to earn a higher margin.
Biofuels are covered by technical committee on petroleum additives headed by the DOE.
