A big business group has urged Congress anew to speed up the enactment of a proposed law mandating the use of renewable sources of fuel.

The Biofuel Act of 2006 mandates the blending of coco-biodiesel or coconut methyl ester (CME) inall diesel fuel and bioethanol in gasoline sold across the country.

Apart from being environment-friendly, the Federation of Philippine Industries (FPI) under its president Jesus Arranza said yesterday the use of biodiesel would be beneficial not only to farmers but to producers and distributors as well.

In a position submitted to the Senate Committee on energy chaired by Sen. Miriam Defensor-Santiago, Arranza said his group strongly supports the immediate enactment of bills pending at the house regarding the use of coco-diesel.

At the House of Representatives, there is a pending Coco-diesel Act of 2005 which mandates Coco-methyl ester (CME) blending in diesel fuel. At the Senate, the Biofuel Act calls for the mandatory blending of both CME and bioethanol in diesel and gasoline.

Arranza noted the delay in the enactment of the biodiesel blend at one percent (B1) is seen to force the country to throw away the yearly possible savings of P 16.5 billion into foreign diesel that is inefficiently burned and ends up as added air pollution.

In further making his point, Arranza stressed the safety and environmentally friendly features of the coco-biodiesel.

"They do not contain any toxic substances, hence, their burning does not produce any harmful emissions nor green house gases. Furthermore, they promote fuel security as well as accelerate country-side growth with the use of sugar cane for bioethanol and coconut for CME production," Arranza said.

Interest in the biofuel bill was sparked recently by the strong resurgence of world oil prices after a series of temporary price reductions towards the end of last year.

Analysts from all over the world have predicted oil prices to continue rising during the rest of 2006.

FPI is an organization of "big business" groups in the country, including 35 of the biggest and most diverse industry associations nationwide - from industrial farmers to component producers to car manufacturers, making it the premiere private industry representation in the Philippines.