PHL Seen as Top 5 Biofuel Importer by 2026 as Sugar Output Dwindles

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December 9, 2021

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by Marielle C. Lucenio (Business World) THE International Energy Agency (IEA) said the Philippines is expected to become a top five importer of biofuels by 2026.

“The Philippines joins the top five import list as a stable ethanol blending requirement, increasing gasoline demand and a historically high import ratio lead to growing imports,” the IEA said in an analysis, specifically referring to bioethanol used in gasoline called E10, referring to a 10% level of fuel supplementation.

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Sugarcane is the source of domestic ethanol and is “shrinking” in output, according to the US Department of Agriculture (USDA). Early this year, the USDA reported that the country’s output for the current crop year beginning in September may only hit 2.14 million metric tons (MT), down from the previous year’s 2.15 million MT.

Asked whether expanding imports would violate the Biofuels law, Mr. Diaz said the law stipulates the use of “indigenous” sources of ethanol.

The Biofuels Act of 2006, or Republic Act 9367, aims to reduce dependence on imported fuels and bars the import of biofuels.

“However, the need to import due to short supply of indigenous ethanol has been approved by the Department of Energy (DoE). Surely, the import approval is meant to attain the purpose of reducing dependence on the use of fossil gasoline, and produce cleaner air for public health wellness,” Mr. Diaz said.

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The FPI recently proposed to the DoE the usage of palm oil in the fuel mix to help bring down prices. READ MORE

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