Zubiri: Suspend Fuel Excise, Strengthen Alternative Fuels like Biofuels, E-vehicles

(SunStar) Senate majority leader Juan Miguel Zubiri says he is pushing for the suspension of excise tax on fuel in a press conference at the Nature's Village Resort in Talisay City Tuesday night, March 8, 2022. -- SENATE Majority Leader Juan Miguel Zubiri is pushing to suspend fuel excise tax in the midst of skyrocketing fuel prices sparked by Russia’s war in Ukraine.

He also called for stronger implementation of the Biofuels Act as an option for alternative fuels.

“But suspending excise tax is a short-term solution. We need to think long-term, to avoid coming to another situation like this in the future. So long as we are dependent on foreign oil, our prices will be dependent on the very volatile international arena as well. That is why we must strengthen our local alternative fuel sources, like biodiesel and bioethanol, which can be produced in the country,” he said.

The senator, who has roots in Negros Occidental, authored the Biofuels Act of 2006.

“I authored the Biofuels Act because I wanted to create an alternative fuel program. Unfortunately, the government never fully supported it, and there have been minimum investments in the country,” he said.

“We were hoping to follow Brazil, India, Thailand, and Malaysia, na may sariling biofuels production kaya mas mura na at homegrown pa. Sayang at hindi ito na-promote nang mabuti at makatulong pa sana ito sa lahat ng sugar at coconut farmers sa bansa,” he added. READ MORE

Excerpt from Philippine Information Agency: The DOE, he (Energy Secretary Alfonso Cusi) said, is also asking for intervention power to study the flexibility in fuel blending under Biofuel Law that regulates mixing ethanol or alcohol to gasoline, and coco oil to fuel.

Blending affects prices because coco oil is more expensive than diesel and this is also true with ethanol, according to Cusi. The country imports large volume of ethanol but higher domestic price of the product affects prices and the government has to strike the right balance to protect the consumers. READ MORE

Excerpt from PhilStar: The Ethanol Producers Association of the Philippines (EPAP) is opposing a proposal to suspend the Biofuels Act of 2006 and is pushing to raise the blend from 10 to 15 or 20 percent to reduce gasoline prices and generate more savings from avoided greenhouse gas (GHG) emissions.

“What is affecting the prices of gasoline is not bioethanol, it is the tax… We are in fact lowering the price of gasoline,” EPAP chairman Gerardo Tee said in an interview with The STAR.

While Tee acknowledges that domestic ethanol is expensive, ethanol producers import cheaper ethanol to meet the local requirement for blending under the law, which then averages down the retail pump price of gasoline.

“Now that the fuel cost is so high, it is cheaper to use bioethanol. With our importation of 300 million liters [of ethanol], that would pull down the prices of gasoline,” he said.

With the average price of domestic and imported gasoline, industry computation showed that E10 gasoline decreased the pump price by P3.40 per liter versus pure imported gasoline.

Signed into law during the term of President Gloria Macapagal Arroyo, the Biofuels Act of 2006 mandates that all liquid fuels for motors and engines sold in the Philippines shall be blended with biofuels – ethanol for gasoline and coco methyl ester (CME) for diesel. READ MORE