Biodiesel suspension hurts 25M reliant on coconut industry – lawmaker

4Ps Party-list Rep. Marcelino “Nonoy” Libanan has criticized the Department of Energy (DOE) for suspending the implementation of higher biodiesel blend mandates, saying the decision undermines the livelihoods of 25 million Filipinos connected to the coconut industry.

“The DOE’s decision to delay the shift to four percent (B4) and five percent (B5) biodiesel blends deals a serious blow to the millions of Filipino families whose survival hinges on coconut farming,” Libanan said.

“At a time when we should be expanding opportunities for rural income and supporting domestic agriculture, this suspension pulls the rug out from under our coconut farmers,” he added.

Libanan emphasized that higher biodiesel blends would have created increased demand for copra, the dried coconut meat used to produce biodiesel feedstock, thereby raising farmgate prices.

“More copra demand means higher copra prices, and that translates directly to food on the table for many of our poor farmers and their families,” he noted.

The DOE, in a July 17 advisory, cited potential inflationary effects as the reason for suspending the mandates, which were scheduled for implementation in October 2025 (B4) and October 2026 (B5).

Libanan challenged this rationale, arguing that economic growth and social equity should take precedence over short-term fuel price control.

“Yes, there may be short-term effects on pump prices, but we should not forget the bigger picture: a stronger coconut industry, improved rural incomes, better energy security, and a cleaner environment,” he said.

“We should prioritize inclusive economic growth over short-term oil price management. Why must our poor coconut farmers always be the ones to sacrifice whenever policymakers make adjustments?” Libanan added.

He called on the DOE and the National Biofuel Board (NBB) to revisit their decision and engage with stakeholders from the agriculture sector.

“We must not allow our local biodiesel industry to stagnate. This is a matter of national interest, rural development, and social justice,” he said.

Libanan affirmed the 4Ps Party-list’s commitment to championing rural livelihoods, noting that higher biodiesel blending is part of a broader effort to uplift the economic conditions of small farmers.

According to the Philippine Coconut Authority, there are around 3.5 million registered coconut farmers working across 3.6 million hectares nationwide, with about 25 million Filipinos reliant on the industry’s value chain.

Government data shows that over 60 percent of coconut farmers and workers live below the poverty line, highlighting the sector’s vulnerability to policy changes that suppress market demand.