Manila: A proposed measure to temporarily suspend mandatory biofuel blending, amid Middle East conflict concerns over oil supply, is not expected to hurt D and L Industries' business. D and L Industries manufactures food ingredients, chemicals for personal and home care, and coconut-based biodiesel through Chemrez Technologies Inc.

According to Philippines News Agency, D and L president and CEO Alvin Lao mentioned that the proposal suspends blending for a year if blended fuel prices are at least 5 percent higher than pure fuel. Lao stated that current market conditions show the price differential between biodiesel-blended diesel and pure diesel remains well below the five percent threshold indicated in the proposed legislation. Therefore, the company does not anticipate any material impact under the present market conditions.

Lao explained that the differential is around 1.33 percent when diesel prices are approximately PHP90 per liter. He described the proposed measure as a temporary price stabilization mechanism, which does not repeal the Biofuels Act or alter the country's long-term policy direction toward renewable fuels. This leads the company to believe that the long-term fundamentals of the biodiesel industry will remain intact.

Additionally, Lao highlighted that Chemrez has the capacity to redirect production toward higher-value coconut-based oleochemical exports if domestic biodiesel demand temporarily decreases. He emphasized that global demand for sustainable specialty ingredients remains steady. The operational flexibility and resilience developed over the years enable D and L Industries to adapt to changing market conditions while maintaining stable growth.