D&L Industries, Inc., a leader in specialty food ingredients and oleochemicals, anticipates no material impact on its operations under current market conditions following the filing of a House bill proposing the temporary suspension of mandatory biofuel blending.
The proposed legislation, certified as urgent by President Ferdinand R. Marcos Jr., seeks to grant the Executive branch the authority to suspend the biofuel blending requirement under the Biofuels Act of 2006 for up to one year. This measure is intended as a price stabilization mechanism during periods of extreme global oil market volatility.
A critical provision of the bill specifies that a suspension can only be triggered if the price of blended fuel is at least 5% higher than that of pure fuel.
“Based on prevailing market conditions, the price differential between biodiesel-blended diesel and pure diesel remains well below the five percent threshold,” said Alvin Lao, President and CEO of D&L Industries. “At current prices—approximately Php 90 per liter for diesel—the differential is estimated at only 1.33%. As such, we do not expect any material impact on our business at this time.”
D&L’s biodiesel operations are managed through its subsidiary, Chemrez Technologies, Inc., the country’s premier producer of high-quality coconut-based biodiesel. Management remains confident in the industry’s long-term trajectory, noting that the bill is a temporary relief measure rather than a policy shift away from renewables.
To mitigate potential domestic fluctuations, D&L leverages a highly flexible manufacturing model:
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Export Pivot: Chemrez can redirect production toward high-value coconut-based oleochemical exports.
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Global Demand: International markets continue to show robust demand for sustainable, plant-based specialty ingredients.
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Operational Resilience: The company’s infrastructure allows for rapid shifts in product mix based on regional demand and regulatory environments.
“We appreciate that policymakers recognize the importance of protecting the local biodiesel industry,” Lao added. “This sector supports the livelihoods of millions of Filipino coconut farmers and is vital to the country’s energy security. We remain committed to engaging constructively with stakeholders to ensure the domestic agro-industrial value chain remains viable.”
