On 7 May 2024, the Department of Energy ("DOE") issued Circular No. 2024-05-14 ("Circular") or the Guidelines on Biofuel Blend Implementation, which covers all Downstream Oil Industry ("DOI") participants and the local biofuel producer industries.
Following the drastic increase in the cost of fuel over the past years, the National Biofuels Board ("NBB") has determined that an increase in the bioethanol blend will reduce the pump price of diesel and gasoline fuel and help alleviate the burden of rising prices on consumers.
Beginning 1 October 2024, it will be mandatory that all diesel fuel distributed and sold by DOI participants in the country contain biodiesel blend at 3%.
Further, DOI participants may voluntarily offer gasoline fuel containing 20% bioethanol blend to their consumers. Increasing the ethanol blend to 20% may result in a reduction of more than one-peso in the line pump price.
