Biofuel content hike to reduce fuel consumption by 80M liters


The Department of Energy’s (DOE) revised guidelines on accreditation of biofuels will help the country reduce its fuel consumption by 80 million liters while helping minimize greenhouse gas emissions, according to the foreign agriculture unit of the United States Department of Agriculture (USDA).

“[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 said in its recent assessment report.

The DOE announced that it will soon be releasing a circular within the month, which will strictly observe the downstream oil industry, including those from the biofuel sector.

Under Republic Act 9367 or the Biofuels Act of 2006, all gasoline fuel must contain at least ten percent of bioethanol.

“Meanwhile, [the FAS] does not expect an impact on biodiesel demand given its understanding of corresponding blend rates,” the report continued.

Department Circular 2021-06-0014 or the DOE’s revised circular on the accreditation and submission of notices and reports of the country’s downstream oil players looks to establish enhanced reporting procedures connected to “critical information” on the required blending of ethanol and coco methyl ester, and requires notices of importation and distribution.

Energy Sec. Alfonso Cusi said that the new issuance would help benefit consumers, secure part of the country’s fuel supply by using indigenous biofuels, and help sugarcane and coconut farmers tap into the market.