March 17, 2026 – D&L Industries, Inc. does not expect any material impact on its business under current market conditions following the filing of a bill that would allow the temporary suspension of mandatory biofuel blending in the Philippines.
The proposed measure, currently being deliberated in the Senate, would allow the President to temporarily suspend the locally-sourced biofuel blending requirement under the Biofuels Act of 2006 for up to one year during periods of abnormal fuel price movements.
The bill, certified as urgent by President Ferdinand R. Marcos Jr., aims to provide the government with additional flexibility to stabilize pump prices amid volatility in global oil markets.
Importantly, the bill in its current form allows suspension only if blended fuel prices are at least five percent higher than 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,” D&L President & CEO Alvin Lao remarked.
At current pricing dynamics, the differential is estimated at approximately 1.33% when diesel prices are around Php 90 per liter.
“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,” Lao continued.
D&L’s biodiesel operations are carried out through Chemrez Technologies, Inc., one of the country’s leading producers of coconut-based biodiesel.
“Chemrez has the flexibility to redirect production toward higher-value coconut-based oleochemical exports should domestic biodiesel demand temporarily soften. 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 added.
“We appreciate that policymakers recognize the importance of protecting the local biodiesel industry, which supports the livelihoods of millions of Filipino coconut farmers and contributes meaningfully to the country’s sustainability and energy security goals. Based on the discussions so far, there appears to be strong appreciation for ensuring that the domestic agro-industrial value chain for biofuels remains viable even as the government seeks to manage fuel price volatility. We remain committed to engaging constructively with policymakers and industry stakeholders as discussions on the proposed measure progress,” Lao concluded.
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D&L Industries is a Filipino company engaged in product customization and specialization for the food, chemicals, plastics and consumer products ODM industries. The company’s principal business activities include manufacturing of customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use. Established in 1963, D&L has the largest market share in most of the industries it serves, as well as long-standing customer relationships with the Philippines’ leading consumer and manufacturing companies. It was listed on the Philippine Stock Exchange in December 2012. For more information, please visit https://www.dnl.com.ph/investors/.
This press release may contain some “forward-looking statements” which are subject to a number of risks and uncertainties that could affect D&L’s business and results of operations. Although D&L believes that expectations reflected in any forward-looking statements are reasonable, D&L does not guarantee future performance, action or events.
INVESTOR RELATIONS CONTACT
Crissa Marie U. Bondad
Investor Relations Manager – D&L Industries Inc.
+632 8635 0680
crissabondad@dnl.com.ph / ir@dnl.com.ph