October opens with oil price hikes, new biodiesel blend

The first week of October will be marked by another price increase and the implementation of a higher biodiesel blend. In separate advisories on Monday, Cleanfuel, Shell Pilipinas, Caltex, Petro Gazz, Seoil and Jetti said the prices per liter of diesel would climb by 90 centavos, gasoline by 45 centavos and kerosene by 30 centavos effective Oct. 1.

Rodela Romero, director of the Department of Energy’s (DOE) Oil Industry Management Bureau, said the upward adjustments could be attributed to supply “uncertainty” over the worsening conflict in the Middle East. The Chinese government’s move to boost its economy is also seen to offset weak demand in Europe.

The implementation of a three percent coco methyl ester (CME) blend in diesel fuel sold nationwide would take effect on Oct. 1, the DOE also said. This will further rise to four percent after a year, and five percent by October 2026. The DOE said the move would benefit coconut farmers, biodiesel producers and other players in the sector as over 900 million coconuts would be needed to produce the CME requirements. As for the impact on consumers, there will be “minimal” adjustments in pump prices, it added. —LISBET K. ESMAEL