Long-term fundamentals of biodiesel intact – D&L

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March 19, 2026 | 12:00am

[MANILA, Philippines — Specialty food ingredients and oleochemicals producer D&L Industries Inc. expects the long-term fundamentals of the biodiesel industry to remain intact amid a proposed suspension of  biofuel blending.

D&L said it does not expect any material impact on its business under current market conditions following the filing of a bill that would allow the suspension of mandatory biofuel blending in the Philippines.

“Based on prevailing market conditions, the price differential between biodiesel-blended diesel and pure diesel remains well below the five percent threshold indicated in the proposed legislation. As such, we do not expect any material impact under current market conditions,” D&L president and CEO Alvin Lao said.

D&L’s biodiesel operations are carried out through Chemrez Technologies Inc., one of the country’s leading producers of coconut-based biodiesel.

Lao said Chemrez has the flexibility to redirect production toward higher-value coconut-based oleochemical exports should domestic biodiesel demand temporarily soften.

He said global demand for sustainable specialty ingredients remains robust.  “The operational flexibility and resilience we have built over the years allow us to navigate evolving market conditions while continuing to deliver stable growth,” he said.

The proposed measure, currently being deliberated in the Senate, will allow the President to suspend the locally sourced biofuel blending requirement under the Biofuels Act of 2006 for up to one year during periods of abnormal fuel price movements.

Certified as urgent by President Marcos, the bill aims to provide the government with additional flexibility to stabilize pump prices amid volatility in global oil markets.

The bill, in its current form, allows suspension only if blended fuel prices are at least five percent higher than pure fuel prices. At current pricing dynamics, the differential is estimated at approximately 1.33 percent when diesel prices are around P90 per liter.

“We appreciate that policymakers recognize the importance of protecting the local biodiesel industry, which supports the livelihoods of millions of Filipino coconut farmers and contribues meaningfully to the country’s sustainability and energy security goals,” Lao said