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RMC No. 105-2024: Implementation of increased biodiesel blend requirements, and updating of the requirements for permit to operate for Downstream Oil Industry participants

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Summary

RMC No. 105-2024 implements increased biodiesel blend requirements and updated permit to operate requirements for Downstream Oil Industry (DOI) participants.

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Key points

  1. Biodiesel blend schedule. The diesel blend rises from the existing two percent (2%) to three percent (3%) on October 1, 2024. It rises to four percent (4%) on October 1, 2025 and five percent (5%) on October 1, 2026.
  2. Bioethanol option. DOI participants may offer gasoline with a twenty percent (20%) bioethanol blend on a voluntary basis.
  3. Permit requirements. Permit holders must comply with the increased blend. Applications, renewals and compliance reports must clearly show adherence to the new percentages.
  4. Permit validity. Existing permits must be updated by December 31, 2024. Existing valid permits as of the date of the Circular stay valid only until December 31, 2024. New permits issued, and applications and renewals done as of the date of the Circular, are valid until December 31, 2025.
  5. Non-compliance. Non-compliance results in penalties and sanctions under existing laws and regulations.

Who is affected

  • DOI participants
  • Fuel distributors
  • Fuel retailers

Deadlines and effectivity

  • 3% blend: October 1, 2024
  • 4% blend: October 1, 2025
  • 5% blend: October 1, 2026
  • Existing permits updated by December 31, 2024
  • New permits valid until December 31, 2025

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.