A panel in the House of Representatives has approved a substitute bill that would allow the temporary suspension of mandatory biofuel blending in fuel as a way to address spikes in oil prices.
The measure, approved at the House Committee on Energy, consolidates House Bills 4151 and 5788. It seeks to amend Republic Act No. 9367, or the Biofuels Act of 2006, which currently requires biofuel components to be blended into gasoline and diesel sold in the country.
Under the proposal, the President may suspend the mandated biofuel blend, including coco-biodiesel and other biofuel components, for up to one year if certain conditions are met.
The suspension may be implemented upon the recommendation of the Department of Energy and the National Biofuels Board.
The authority may be exercised when the price of blended fuel becomes at least five percent higher than pure gasoline or diesel, a threshold lawmakers say could place additional pressure on fuel prices for consumers.
Supporters of the measure said the proposal is designed as a price stabilization and consumer protection tool, particularly during periods of oil price volatility or when supply constraints affect biofuel components such as ethanol or coco methyl ester.
Rep. Faustino “Bojie” Dy III expressed support for the measure, saying it aims to give the government flexibility to respond to fluctuations in global oil prices while protecting consumers from possible increases in pump prices.
If passed by both chambers of Congress, the measure would be sent to President Bongbong Marcos for approval. The substitute bill has so far only cleared the House Committee on Energy and must still be approved by the full House of Representatives and the Senate before it can become law.
