Negros Legislator Bats for 15% Ethanol in Gasoline

by Vonn Andrei E. Villamiel (Business World) A Negros Occidental legislator urged the government to increase the ethanol blend in gasoline to 15% (E15) from the current 10% (E10), citing supply security and the benefits to the domestic sugar industry.

In a statement on Tuesday, the province’s 5th District Rep. Emilio Bernardino L. Yulo said raising the blend from 10% to 15% could help cushion the impact of rising fuel prices and support demand for domestically produced bioethanol.

The Biofuels Act of 2006 requires that all liquid fuels for use in motors and engines be blended with biofuels. Since 2012, gasoline has been sold as a 10% bioethanol blend, known as E10.

Mr. Yulo said increasing the blend to E15 would raise the ethanol component and expand the demand for bioethanol, primarily derived from molasses.

“Increasing the ethanol blend from E10 to E15 can create stronger domestic demand for sugarcane-based ethanol and provide a needed market for sugar byproducts at a time when our farmers are under tremendous pressure and the general public is reeling from rising prices,” Mr. Yulo said.

The House Committee on Agriculture had been looking into sugar millgate prices, which recently fell to about P2,000 to P2,100 per 50-kilogram bag, below estimated production costs of roughly P2,500.

In the statement, Mr. Yulo said the Philippines has 14 accredited bioethanol plants with a combined installed capacity of 508 million liters per year, although effective output is estimated at 396 million liters annually.

Around 80% of the country’s molasses supply is also used for ethanol production, according to US Department of Agriculture estimates.

Mr. Yulo said government support will be needed to expand production capacity, including incentives for fuel-grade ethanol. He also said ethanol imports could be considered to supplement supply, provided they do not displace domestic production. READ MORE

Excerpt from Sun.Star Cebu: THE National Congress of Unions in the Sugar Industry of the Philippines-Trade Union Congress of the Philippines (Nacusip–TUCP) expressed support for Negros Occidental 5th District Rep. Emilio Bernardino Yulo’s proposal to increase the country’s ethanol blend from 10 percent (E10) to 15 percent (E15).

Roland de la Cruz, Nacusip-TUCP national president, said in a statement that from the standpoint of the labor sector, this policy shift is not just an energy measure but a lifeline for thousands of sugar workers, mill employees, and bioethanol plant personnel whose livelihoods depend on a stable and expanding industry.

He said raising the blend to E15 will significantly boost demand for locally produced bioethanol, directly translating into higher productivity and greater income security for sugar farmers and workers.

“Every liter of bioethanol produced sustains jobs in rural communities where employment opportunities are scarce and economic vulnerability is high,” he added.

De la Cruz said the Social Amelioration and Welfare Program (Sawp) under Department of Labor and Employment (Dole) Department Order 144-15 is a critical safety net for workers in the biofuel sector.

He said the program mandates a P0.07 lien per liter of molasses-based bioethanol, which funds livelihood projects, emergency assistance, and financial benefits for workers.

“Increasing the blend to E15 directly increases these funds, strengthening the social protection system that workers rely on,” he said.

If the blending requirement increases, he added that the volume of bioethanol sold by local producers will likewise increase, which will result in higher lien collections — of which about 80 percent goes straight to sugar workers as cash bonuses or financial benefits.

De la Cruz said this is real money that goes to real families, adding that any delay or rollback in blending requirements is a direct attack on workers’ welfare.

Nacusip–TUCP also has an active role in the Tripartite Consultative Council for Sawp in the Bioethanol Sector, where field and mill workers are represented in shaping policies that protect their rights and ensure fair distribution of benefits.

The federation, along with the National Federation of Sugarcane Planters and Confederation of Sugar Producers Association Inc., firmly opposes any legislative attempt to suspend the mandatory ethanol blending program.

Nacusip–TUCP warned that suspending the requirement would cripple the bioethanol industry, slash income opportunities for sugarcane farmers, and put thousands of workers at risk of job loss.

“Suspending the blending mandate will not only weaken the industry — it will push workers deeper into poverty,” De la Cruz said.

He said lawmakers must recognize that the E15 transition is not merely an economic adjustment. It is a pro-worker, pro-farmer, and pro-community policy that strengthens rural economies and protects the country’s labor force.

Nacusip–TUCP also urged Congress to prioritize the welfare of workers and reject any measure that undermines the progress made in building a stable, job-generating bioethanol sector.

Amid rising fuel prices, Yulo earlier called on the National Government to increase the country’s ethanol blend requirement to cushion fuel price hikes.

Yulo said the fuel blend increase, from E10 to E15, is a practical measure to avert possible fuel shortage, and provide relief to local sugar industry and the public. READ MORE