Coco-diesel: The Philippines’ Biodiesel
Okay, so I did some research on biofuels in the Philippines. Biodiesel is produced by extracting oil from plants.
The question in my mind while doing so was: Why is commercial biodiesel practically the same price as regular petroleum diesel?
I found out (with the help of my loving husband) that Flying V’s biodiesel blend is B1. Which means it contains only 1% coco biodiesel and 99% petroleum. Hence, the small price difference. So why only 1% you say? Good question. I’ve got an irritating answer (irritated because it makes complete sense):
Too many products are dependent on coconut supply like the food and cosmetics industries. Since coco biodiesel is a lucrative business (all the more at this point in time), the government is afraid that there might be a sudden shift in supply which would wreak havoc in the other industries dependent on coconuts. Just like what happened to Brazil in terms of their corn production due to ethanol demand. It makes sense that our government doesn’t want that to happen.
Though the World Wide Fuel Charter accepts blends of up to 5%, this must be done gradually. There is a law in place. In 2006, President Gloria Macapagal Arroyo, signed a law that makes it mandatory for fuel companies to use B1 blend (for diesel products) from the year 2009 onwards with increasing increments in the following years. She aims to reduce our dependence on imported petroleum by 3% in 2011.
Even with coco-diesel composing a mere 1% of the total biodiesel blend, it is said that it should be enough to help diesel engines to be fuel efficient thus, more mileage and is still a big help to the environment. These are good things but why do I still feel cheated? I mean, if they really want people to opt for biodiesel, shouldn’t they encourage them by bringing the price much lower? At least around P2.00 ($0.04/liter or $0.17/gallon) because despite the fact that coco-diesel is a NATURAL RESOURCE, it’s also tax-free.
July 22nd, 2008 at 1:25 am
That makes sense to gradually increase the percentage of coco bio-diesel. I tend to take all this “green” talk with a grain of salt. I don’t necessarily believe everything I’m being told – Some of it is just politics!
July 23rd, 2008 at 5:35 am
Hi April!
Yes, you are absolutely right. Taking all these “green” talk with a grain of salt is completely essential in order not to lose my hope in a greener future. I’m slowly and painfully realizing that some IS used for political platforms and self-interest.
October 26th, 2009 at 5:49 am
i use Biodiesel on my car. i think everyone should use biodiesel so that each one can at least contribute to the environment.
November 11th, 2009 at 3:17 pm
we should patronize the use of Biodiesel because it is a renewable source and fossil fuels would soon be depleted. `
August 25th, 2010 at 4:48 am
WHY UNTIL NOW THE DEMAND FOR COCONUT IS NOT BOOSTED, IS IT NOT BECAUSE OUR GOVERNMENT NOT SUPPORTING COCO DIESEL FOR THE FILIPINO COCO PLANTERS TO EARN, NO KICK BACK FROM COCO PLANTERS, HOPE THIS WILL BE ADDRESS SOON BY THE PRESENT GOVERNMENT, WHY NOT WE WILL DEVELOP OUR COCO DIESEL PRODUCTS TO EARN AND USE WITH OUR OWN
September 29th, 2010 at 3:28 pm
I follow your website for quite a extended time and need tell that your content articles usually prove to be of a high value and quality for readers.
September 30th, 2010 at 5:19 pm
biodiesel fuels are less polluting and more renewable compared to fossil fuels like conventional diesel:`’
October 18th, 2010 at 6:20 am
biodiesel is the best fuel that we can get, it is reneweable and sustainable”,,
March 8th, 2011 at 1:46 pm
Wow, awesome post! I probably read it over at least 3 separate times, haha. Actually, I found it yesterday but just had to go over it once again today. You just earned yourself an additional return visitor, haha! All kidding aside, thank-you for investing the effort to put this.
April 24th, 2011 at 5:40 am
Its not at all politics. its more on economics. its not even bout supply and demand. we have an abundance of coconut oil in the Philippines. we are even looking for exports to cut down excess supply.
we are short of fossil diesel while coconut oil is in excess. wouldnt a government dictated by the big three players be sympathetic now to its people specially when crude oil prices are increasing?
December 29th, 2011 at 9:37 am
hi. we’re doing a market analysis about the biodiesel industry in the philippines. we went to the biomass division of doe to get some market data and we’ve interviewed their supervisor. we learned that the biodiesel price (B2, 2%biodiesel, 98%diesel) is not getting cheaper because of the high price of coconut oil in the market. coconut oil is the feedstock in biodiesel production in the philippines.
according to this article, http://www.manilatimes.net/index.php/business/3245-diesel-price-spike-feared-on-coconut-oil-demand.
“The price of CME per liter stands at P104, up from P89 at the start of this year and P82 in December, according to Lao.
When the Biofuels Act was implemented four years ago, the price of coconut oil stood at P40, he said.
“For every P10 increase in CME per liter, the price of diesel will increase by 20 centavos at the pump,” he added.”