The United Coconut Associations of the Philippines (UCAP) on Thursday expressed support for the government’s decision to maintain the coconut methyl ester (CME) blend in diesel at 3 percent, saying it creates stable local demand for coconut oil and gives the industry time to prepare for higher blending levels.
UCAP chairman Marco Reyes said the CME program reduces the country’s dependence on volatile export markets, where coconut oil sales represent only a small portion of global trade.
“Now we are able to lessen our dependence on the export market,” Reyes told a press briefing during the World Coconut Congress in Pasay City.
“With CME, we have a local captive demand for coconut oil, and that’s why we are happy with the 3-percent blend,” he said.
While some in the industry pushed for a 4-percent CME blend (B4), Reyes called maintaining the current level “a very sensible move” to give the supply chain time to adjust. He also noted that the benefits of the blend, such as up to 10-percent improved engine efficiency, are often overlooked by the Department of Energy (DOE).
Reyes said he would support a shift to a B4 blend once coconut oil supply returns to normal. Global production has dipped sharply this year in major producers like the Philippines, Indonesia, and India.
UCAP vice chairman Dean Lao cited the industry’s heavy reliance on exports, with 70 percent of coconut oil shipped abroad, primarily to the European Union (55 percent) and the United States (25 percent).
“With the CME program, we finally have a high-value domestic market for coconut oil,” Lao said, adding that 2026 is shaping up to be a “good year for coconut farmers and investors” with better harvests expected.
