A fuel dispenser nozzle in this undated photo. An official of D&L Industries, which operates Chemrez Technologies, on Tuesday (March 17, 2026) said a proposed temporary suspension of mandatory biofuel blending is unlikely to affect its business, as the current price gap is about 1.3 percent — well below the 5 percent threshold between blended and pure fuel. (Photo courtesy of Chemrez Technologies Inc. website)
D&L Industries said a proposed measure to temporarily suspend mandatory biofuel blending, floated as a safeguard against possible oil supply disruptions linked to tensions in the Middle East, is unlikely to materially affect its business.
The listed manufacturer, whose portfolio spans food ingredients, specialty chemicals for personal and home care, and coconut-based biodiesel through Chemrez Technologies Inc., said current market conditions do not point to any immediate risk from the proposal.
In a statement on Tuesday, D&L president and chief executive officer Alvin Lao said the bill would allow a one-year suspension of biofuel blending only if the price of blended fuel rises at least 5 percent above 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 indicated in the proposed legislation. As such, we do not expect any material impact under current market conditions,” Lao said.
He noted that when diesel prices are at around PHP90 per liter, the price gap is only about 1.33 percent, still far below the trigger outlined in the proposed measure.
Lao also stressed that the bill is designed as a temporary price stabilization tool rather than a rollback of the country’s renewable energy policy.
“The proposed measure is intended as a temporary price stabilization mechanism and does not repeal the Biofuels Act or alter the country’s long-term policy direction toward renewable fuels. We therefore expect the long-term fundamentals of the biodiesel industry to remain intact,” he said.
Even in the event of softer local biodiesel demand, Lao said Chemrez remains positioned to adjust by channeling output to more profitable export markets.
He said the company can shift production toward higher-value coconut-based oleochemical exports, allowing it to cushion any short-term slowdown in domestic demand.
“Global demand for sustainable specialty ingredients remains robust. The operational flexibility and resilience we have built over the years allow us to navigate evolving market conditions while continuing to deliver stable growth,” Lao said.