Energy dep’t cracks down on fuel firms over biodiesel mix compliance

The Department of Energy (DOE) is ramping up its monitoring efforts to make sure oil companies fully comply with the government’s order to increase their biofuel blend aimed at cutting dependence on imported fuels and reducing greenhouse gas emissions.

The implementation of a 3-percent coco methyl ester (CME) blend, from 2 percent previously, in diesel fuel sold nationwide took effect on Oct. 1.

Based on the DOE website, CME is defined as fatty acid methyl esters derived from coconut oil “whose alkyl groups range in varying percentages from C8 to C18 suitable for compression ignition engines and other similar types of engines.”

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“Oil companies have been given ample time to make this adjustment, and the OIMB (Oil Industry Management Bureau) will now conduct inspections at bulk depots to enforce compliance,” Energy Undersecretary Alessandro Sales said in a statement on Friday.

P200,000 fine

“Timely action at the depot level is crucial to maintaining an up-to-date and efficient fuel distribution chain,” he added.

The planned inspections would also be expanded to cover gasoline stations “in the coming weeks,” the DOE said.

It said those found noncompliant, including fuel retailers in possession of biofuel blend that do not meet the national standards, would be slapped with a fine reaching P200,000.

Repeat offenders would see an even higher penalty of P300,000. The DOE may also decide to revoke their accreditation or registration.

READ: October opens with oil price hikes, new biodiesel blend

Citing data from the UN Intergovernmental Panel on Climate Change Carbon Emission Calculator, the 3-percent CME blend would displace around 300 million liters of pure diesel every year, subsequently slashing 1.11 percent in carbon emissions or around 298.2 kilotons of carbon dioxide.

Besides the positive environmental impact, the DOE also said it would benefit coconut farmers, biodiesel producers and other players in the sector as more than 900 million coconuts would be needed to produce the CME requirements.

The government is targeting to further raise the biodiesel mix to 4 percent after a year and 5 percent by October 2026.

In September, the DOE also said that it was looking at initiating talks with the National Power Corp. on the possibility of increasing the biodiesel blend for fuel used in power generation.