Biofuel content hike closer to 10% blend seen reducing fuel consumption by 80 million liters

THE ENERGY Department’s revised guidelines on biofuel accreditation will help the Philippines reduce its fuel consumption by 80 million liters while helping reduce greenhouse gas emissions, the foreign agriculture unit of US Department of Agriculture (USDA) said.

“(We) believe the revised measure has the potential to increase the Philippines’ historical average ethanol blend rate of 8.7% closer to its 10% mandate, which in turn would reduce gasoline consumption by 80 million liters and positively contribute to Philippine (greenhouse gas) reductions,” the USDA’s Foreign Agriculture Service (FAS) said in an analysis posted on its website this week.

This month, the Department of Energy (DoE) announced that it will soon be releasing a department circular (DC) which will strictly monitor the downstream oil industry, including those from the biofuel sector.

Under the Biofuels Act of 2006, a minimum of 10% of bioethanol must be present in all gasoline fuel.

“Meanwhile, (FAS) does not expect an impact on biodiesel demand given its understanding of corresponding blend rates,” it said.

DC 2021-06-0014 or the revised circular for the accreditation and submission of notices and reports of the Philippine downstream oil industry pursuant to the Biofuels Act, proposes to establish enhanced reporting procedures in regard to “critical information” on the mandatory blending of ethanol and coco methyl ester, and requires notices of importation and distribution.

Energy Secretary Alfonso G. Cusi has said that the new circular will benefit consumers, secure a portion of the country’s fuel supply through the use of indigenous biofuels, and help coconut and sugarcane farmers tap into the market created by the new rules. — Angelica Y. Yang