The Biofuel Act kicked in in the Philippines today, and
around the country started pumping B1 into
at midnight (local time),
to AHN. The law requires all oil firms to blend coco-methyl ester (CME) into
products to at one percent of the total. In two years, the companies will also have to blend
into gas to make E5. Even with this tiny percentage, transport groups have "raised concerns over the possible effects of the implementation of the law on oil prices. There have been fears that oil companies may not be able to prevent prices from going up should there be an impact on prices brought about by the implementation of the one percent
blend," AHN reports. Total Philippines Corp. estimate their diesel prices would increase by 30 to 50 centavos per liter. Biofuel supporters in the government, on the other hand, point out that there is a zero value-added tax (VAT) on
to minimize the price jump.