MANILA — The Philippine Coconut Authority (PCA) said it does not support suspending the mandatory blending of coconut-derived biofuel, despite rising global fuel prices linked to the Middle East conflict.

“The PCA maintains that it is not amenable to the full suspension of the biodiesel blend mandate,” the agency said in a statement, responding to inquiries on whether it would recommend adjusting or suspending the biodiesel requirement.

President Ferdinand Marcos Jr. has certified as urgent a bill that would amend the Biofuels Act of 2006, giving the President authority to suspend mandatory biofuel blending if blended fuel prices exceed pure fuel prices by 5 percent. The measure aims to ease pump price shocks amid volatile global markets.

“The biodiesel program continues to serve as the primary domestic driver of coconut oil (CNO) demand,” the PCA said. It explained that coconut farmers sell copra to oil millers, who supply CNO to coconut methyl ester (CME) producers, some of whom are vertically integrated across these stages. Under current practices, no special pricing incentives are given for copra used in biodiesel, limiting direct income impact on farmers.

The PCA warned that “any suspension or displacement of coconut methyl ester (CME) in favor of imported palm methyl ester (PME) would likely redirect domestic supply to lower-priced export markets, thereby exerting downward pressure on local copra and CNO prices.”

“Such a scenario could have significant adverse implications for the livelihoods of coconut farmers, who remain the most vulnerable stakeholders in the value chain,” the agency added.

The regulator said it supports maintaining the biodiesel blend at 3 percent or, if needed, reverting to 2 percent, calling this approach “a calibrated and prudent response under prevailing market conditions.”

The PCA reiterated its commitment to policies that ensure market stability, protect farmer welfare, sustain domestic industry capacity, and promote environmentally sound energy solutions.