Murang Langis Act

Senate Difice of the coccretarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 25 NOV 11 P2:40 First Regular Session SENATE RECEIVED BY: S. No. 1485 Introduced by Senator Jinggoy Ejercito Estrada AN ACT AMENDING SECTION 5 OF REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS THE "BIOFUELS ACT OF 2006" EXPLANATORY NOTE Oil is the driving force behind the economy, transportation, and energy production. It serves as a crucial component in manufacturing and significantly influences the overall cost of goods and services. Republic Act No. 9367, or the Biofuels Act of 2006, was enacted to promote agricultural growth especially in rural areas, promote the use of cleaner fuel, and ultimately reduce the country's huge reliance on imported oil. The law mandates the use of biofuels through blending requirements for gasoline and diesel, offers incentives for production such as tax perks on raw materials for biofuel production, and protects the environment by phasing out harmful fuel additives. The law mandates blending regular fuels for motors and engines with locally produced biofuels. The CME blend-or coconut methyl esther, a type of biodiesel made from coconut oil-was raised to 3% from the previous 2% on October 1, 2024. The government implemented B1 in 2007 and later adjusted to B2 in 2011. The biodiesel blend was initially scheduled to increase to 4%—or B4—by

October 1, 2025 and to 5% by October 1, 2026. However, due to the high global prices of coconut oil—a raw material used as a blend in conventional diesel fuel— the government has postponed the required increase in biodiesel blend to the first quarter of 20261 to prevent further fuel price increases. The prevailing coconut prices in the global market has reached $3,000 per metric ton, from about $1,000 per MT at the beginning of 2024.2 This measure seeks to reduce price pressures to retail pump prices of fuel by suspending the implementation of the biofuel blend requirement of gasoline and diesel for no longer than one year if the price of blended gasoline or diesel will be higher by at least 5% compared with pure gasoline or diesel engine fuels. As such, approval of this bill is earnestly sought. isestate HINGGOY EJERCITO ESTRADA 1 Barro, Dexter II. "Suspension of biidiesel blend increase lifted early next year," 1 Sept. 2025. Manila Bulletin. https://mb.com.ph/2025/09/01/suspension-of-biodiesel-blend-increase-lifted-early-next-year 2 Lagare, J. "Philippines to hold off increase in biodiesel mix," 14 June 2025. Inquirer.net. https://business.inquirer.net/530563/ph-to-hold-off-increase-in-biodiesel-mix

Senate /Office of the secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 NOV 11 P2:40 First Regular Session RECEIVED BY: SENATE 1485 S. No. Introduced by Senator Jinggoy Ejercito Estrada AN ACT AMENDING SECTION 5 OF REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS THE "BIOFUELS ACT OF 2006" Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Murang Langis Act".

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

protect public interest by providing reasonably-priced petroleum products to consumers. 4 Towards this end, the State shall implement policies and programs to ensure the 5 delivery of affordable fuel to the public.

Sec. 3. Section 5 of Republic Act No. 9367, otherwise known as the "Biofuels

7 Act of 2006", is hereby amended to read as follows: "Sec. 5. Mandatory Use of Biofuels. - Pursuant to the above policy, it is hereby mandated that all liquid fuels for motors and engines sold in the Philippines shall contain locally- sourced biofuel components as follows: "5.1 Within two years from the effectivity of this Act, at least five percent (5%) bioethanol shall comprise the annual total volume of gasoline in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume: Provided, That the ethanol blend conforms to PNS.

"5.2 Within four years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility and thereafter recommend to DOE to mandate a minimum of ten percent (10%) blend of bioethanol by volume into all gasoline fuel distributed and sold by each and every oil company in the country. "In the event of supply shortage of locally-produced bioethanol during the four-year period, oil companies shall be allowed to import bioethanol but only to the extent of the shortage as may be determined by the NBB. "5.3 Within three months from the effectivity of this Act, a minimum of one percent (1%) biodiesel by volume shall be blended into all diesel engine fuels sold in the country: Provided, That the bio diesel blend conforms to PNS for biodiesel. "Within two years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility and thereafter recommend to DOE to mandate a minimum of two percent (2%) blend of biodiesel by volume which may be increased taking into account considerations including but not limited to domestic supply and availability of locally-sourced biodiesel component. "PROVIDED, THAT THE PRESIDENT, UPON THE RECOMMENDATION OF THE NBB AND THE DOE, MAY SUSPEND THE IMPLEMENTATION OF THIS SECTION, OR ANY PART THEREOF, THROUGH AN EXECUTIVE ORDER, FOR A PERIOD NOT LONGER THAN ONE (1) YEAR, IF, AS A RESULT OF ITS IMPLEMENTATION, THE PRICE OF BLENDED GASOLINE AND/OR DIESEL ENGINE FUELS WILL BE HIGHER BY AT LEAST FIVE PERCENT (5%) COMPARED TO PURE GASOLINE AND/OR DIESEL ENGINE FUELS."

Sec. 4. Implementing Rules and Regulations. - Within ninety (90) days from

the effectivity of this Act, the National Telecommunications Commission shall coordinate with the Department of Information and Communications Technology and the Department of Trade and Industry to promulgate rules and regulations and other issuances as may be necessary to ensure the effective implementation of this Act, 6 including the issuance of proper and adequate information dissemination of its 7 contents and benefits to the general public. The IRR issued pursuant to this Act shall take effect fifteen (15) days after its 9 publication in a newspaper of general circulation.

Sec. 5. Repealing Clause. - All laws, decrees, executive orders, proclamations,

rules and regulations, and issuances, or parts thereof which are inconsistent with the provisions of this Act, are hereby repealed, amended or modified accordingly.

Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in any newspaper of general circulation. Approved,