THE Federation of Philippine Industries, Inc. is batting for the use of palm oil in the country’s fuel mix to help bring down prices.
FPI Chairman Jesus L. Arranza said using palm oil instead of coconut oil in the biodiesel mix will help bring down fuel costs as the former is around $300-$500 cheaper per ton than the latter.
“Diesel is the one being used in public transport and in the delivery of goods, so it affects the masses. The use of the cheaper palm oil therefore will serve as a permanent solution instead of the government having to periodically adjust excise taxes just to cushion the impact of higher crude prices. This is a solution where no sector will be hurt, even the government,” Mr. Arranza said in a statement.
He said coconut oil, which is used in the country’s biofuel mix, can be used for higher-value products, which will benefit farmers.
FPI recently met with Energy department officials to discuss this, the statement said.
“According to our Renewable Energy Management Bureau, it is still a proposal and we will meet again,” Energy Assistant Secretary Gerardo D. Erguiza, Jr. said in a text message when asked about the meeting. — MCL