Release of Fund To Finance the Test Program for the Coco-Diesel Fuel Blend
Letter of Instructions No. 1173, issued on November 16, 1981, emphasizes the need for accelerated research and development in the local commercial utilization of coconut oil, particularly as a diesel fuel extender, to support over a million coconut farmers affected by low global prices. The proposed coco-diesel blend, consisting of 30% coconut oil and 70% diesel, has shown technical feasibility and aims to address the surplus of coconut oil while partially meeting diesel demand. To facilitate a one-year test program, the Ministry of Budget and the Treasurer are instructed to allocate an initial P12 million from a special fund, with potential for additional funding as required. The Ministry of Energy is tasked with providing regular reports on the financial disbursements related to the program. This directive is effective immediately.
Law Information
- Reference Number
- Letter of Instructions No. 1173
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Letters of Instructions
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
November 16, 1981
LETTER OF INSTRUCTIONS NO. 1173
| TO | : | The Minister of Energy |
| The Minister of the Budget | ||
| The Treasurer of the Philippines | ||
| The Administrator of the Philippine Coconut Authority |
The continuing depressed price of crude coconut oil in the world market which can seriously affect the livelihood of over a million Filipino coconut farmers if no immediate alternative local market for the product is developed necessitates accelerated research and development on local commercial utilization of coconut oil. cd i
To date, the utilization of coconut oil as diesel fuel extender appears to have the largest potential in terms of absorbing the country's coconut oil surplus as well as partially displacing the growing demand for diesel fuel. A 30% coconut oil and 70% diesel fuel blend has been found to be technically feasible on a limited scale in diesel engines. A test program for the coco-diesel fuel blend to be undertaken by the Ministry of Energy is, therefore, necessary to demonstrate the feasibility and to gain public acceptance of the program before it is publicly implemented. acd
The price of coconut oil, however, is considerably higher than the present price of diesel fuel, necessitating price assistance to preclude financial loss on the part of the program participants arising from the use of the higher cost fuel. The estimated additional fuel cost for a one-year test program which will involve the use of about 11 million liters of coconut oil is Twenty-Four Million Pesos (P24,000,000).
In view of the above, the Ministry of the Budget and the Treasurer of the Philippines are hereby directed to release immediately to the Ministry of Energy an initial outlay of Twelve Million Pesos (P12,000,000) from the Special Fund created pursuant to Section 8(j) of R.A. 6173, as amended, to finance the foregoing. Additional release may be made from time to time as the coco-diesel test program may require, upon direction of the President. cd i
The Ministry of Energy is directed to submit to the President periodic reports accounting for the disbursement and use of the amount released to it. acd
This Letter of Instruction shall take effect immediately.
DONE in the City of Manila, this 16th day of November, in the year of Our Lord, Nineteen Hundred and Eighty-One. cdt
Cite This Law
Release of Fund To Finance the Test Program for the Coco-Diesel Fuel Blend, Letter of Instructions No. 1173, Nov 16, 1981 (Philippines)
Release of Fund To Finance the Test Program for the Coco-Diesel Fuel Blend, Letter of Instructions No. 1173 (Phil. 1981)
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