HOUSE Minority Leader Marcelino “Nonoy” Libanan has urged the national government to provide direct financial subsidies to coconut farmers and workers who stand to be adversely affected by the looming temporary suspension of mandatory biofuel blending.
Libanan stressed that while efforts to ease rising fuel prices are necessary, safeguards must be put in place to protect millions of Filipinos who depend on the coconut industry for their livelihood.
“Any move to suspend the mandatory biofuel blending policy must be accompanied by immediate and targeted financial assistance for our coconut farmers and workers. They should not be made to bear the burden of stabilizing fuel prices,” Libanan, a 4Ps party-list representative, said in a statement on Tuesday.
The lawmaker proposed that subsidies be coursed through key government agencies, including the Department of Social Welfare and Development (DSWD), the Department of Labor and Employment (DOLE), and the Department of Agriculture (DA), to ensure efficient and timely distribution.
“We must mobilize the DSWD, DOLE, and DA to deliver direct cash support, emergency employment, and agricultural assistance to cushion the impact on vulnerable communities,” he added.
Biofuel blending refers to the practice of mixing a certain percentage of biofuels—such as coconut-based biodiesel—with conventional petroleum fuels like diesel or gasoline.
The policy supports local farmers, reduces dependence on imported fossil fuels, and promotes cleaner energy.
However, suspending the mandate could reduce demand for coconut-derived biofuels, potentially lowering copra prices and affecting farmers’ incomes.
Citing Philippine Coconut Authority (PCA) figures, Libanan said some 3.5 million registered coconut farmers nationwide work across 3.6 million hectares of plantations.
The PCA also estimates that around 25 million Filipinos derive income or economic support from the coconut industry, whether as farmers, laborers, or participants in related value chains.
Libanan pointed out that more than 60 percent of coconut farmers and workers live below the poverty line, making them especially vulnerable to any downturn in copra prices.
“These numbers underscore the urgency of protecting our coconut farmers. A sudden drop in demand for coconut-based biofuels could trigger a decline in copra prices, pushing already struggling families deeper into poverty,” Libanan warned.
“We cannot pursue economic relief in one sector at the expense of another. A balanced approach is needed—one that stabilizes fuel prices while preserving the livelihoods of millions of Filipinos,” he concluded.
Last week, the House of Representatives approved on third and final reading a bill that would allow the temporary suspension of mandatory biofuel blending, in a bid to ease the upward pressure on fuel pump prices.
House Bill No. 8469 seeks to amend the Biofuels Law of 2006, and grants the President the authority to suspend the required use of locally sourced biofuels for up to one year if blended fuel prices exceed those of pure diesel or gasoline by at least five percent.
The Senate, however, adjourned for the Lenten break without passing its counterpart measure, despite the bill having been certified as urgent by Malacañang.
