‘Hike in CME content in diesel to hurt consumers’
The chairman of the Joint Congressional Oversight Committee on Biofuels from the house of Representatives on Sunday opposed the proposal of the Department of Agriculture (DA) to increase the coconut methyl ester (CMe) blend to 5 percent.
Marinduque Rep. Lord Allan Velasco, also the chairman of the house Committee on energy, said the hike in CMe blend to 5 percent from the current 2 percent is “anti-consumer” because it will increase pump prices and transportation costs.
“As it is, consumers are already faced with the burden of high fuel prices,” said the lawmaker.
“Raising the biofuels blend will only aggravate this, as the upward adjustment in the CMe blend is projected to increase the pump prices in diesel by at least P2.25 per liter,” he added.
At the present 2 percent blend, Velasco said, the impact of CMe on diesel is already at P1.50 per liter.
“We must keep in mind that a huge chunk of diesel consumers is from the public transport sector, and any increase in diesel prices will lead to higher transportation cost,” he added.
Velasco said the DA’s proposal could have an adverse impact on food security. he said the increase in CMe blend might affect the prices of other agricultural commodities if lands devoted to food crops are used for biofuels production.
“Food security remains our primary priority. By no means should this proposal compromise food supply. No Filipino should go hungry,” he said.
Velasco urged the DA to assess the “real benefits” of biofuels to farmers. he also asked the DA to assist farmers in developing alternative markets for the local copra industry.
The lawmaker also called on the Department of Labor and employment to implement the Social Amelioration and Welfare Program (SAWP) for Workers in the Biofuels Production.
“Under the law, SAWP should aid our copra farmers in exploring other livelihood opportunities,” Velasco said.
earlier, the Department of energy said it will discuss the primary purpose of increasing the percentage of a coconut oil derivative in the current blend of diesel after Agriculture Secretary emmanuel F. Piñol renewed his support for the increase in CMe blend in diesel.
The DOe said implementing the Biofuels of 2006 will require all diesel fuels sold in the local market to be mixed with 5 percent CMe. At present, the blend includes 2 percent CMe and 98 percent regular diesel.
The agency said increasing the CMe percentage is seen to up demand for copra and lend support to about 2.5 million farmers.
The DA is pushing for an increase in CMe blend to boost domestic copra prices which recorded a steep decline last year due to the drop in the international price of coconut oil.