Steep Rise in Cooking Oil Price Stoke Worries About Impact on Local Consumers

The sustained surge of copra prices stirs fears that it would ripple through the value chain, according to the Philippine Coconut Authority (PCA).  “The Philippine coconut industry is at a critical juncture. If not addressed urgently, the rising costs of copra and coconut oil could strain the operations of processors and ripple into widespread food inflation affecting every Filipino household,” the PCA said in a statement.

Citing data from the agency’s Trade Information and Relations Division (TIRD), the PCA noted that the national average farmgate price of copra reached P58.10 per kilo as of March 31, more than double the level seen in the same period last year.  Millgate prices have also soared as they reached a national monthly average of P75.34 per kilo last month, exceeding the peak triggered by the Russia-Ukraine conflict in March 2022.

To address this continued surge in prices of domestic copra, cooking oil, and other coconut products, the PCA convened industry players and stakeholders from the coconut oil milling, refining, desiccating, and oleochemical sectors. Among the proposed resolutions on possible strategies to mitigate the risks associated with the soaring coconut oil prices was an intensified monitoring of export activities and re-evaluation of biofuel blend increase. 

The PCA said several stakeholders proposed a temporary suspension of the scheduled 1 percent increase in the coco-methyl ester (CME) biodiesel mandate, which is set for October 2025 to 4% (B4).  They advocated for an immediate dialogue with the National Biofuels Board (NBB) to assess the impact of the increased blend on domestic coconut oil supply and pricing, suggesting a potential temporary adjustment to prioritize cooking oil availability for consumers.