Energy Secretary Alfonso Cusi has called for more studies on increasing the biodiesel blend, saying it could have an impact on pump prices especially in the wake of recent successive oil price increases.
“I opposed that, if we do that, the price of fuel will go up. How come the copra price is going down but the price of CME remains high? When the price of copra goes down, CME prices should also go down,” he said.
Rafael Diaz Jr., a biodiesel consultant and expert, said the price assumptions of the Department of Energy was flawed.
“With the current B2 pump price at P44 per liter and a CME price index of P51 per liter (as of March 1, 2019), the cost impact of B5 pump price over B2 pump price will only be P0.21 centavos or 0.48-percent increase, very negligible compared to the multi-benefits it provides specially in fuel cost savings from mileage gain and wellness of public health,” Diaz said.
Diaz said Cusi may have been referring to the spot price of CME and not contracted price, which is fixed over a contract period.