Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

June 4, 2025
Business News

Oil companies passing on ethanol blend to motoring public

  • May 21, 2021
  • 0

Petroleum firms will be passing on in increments to motorists up to Php0.80 per liter increase in gasoline prices. The pass-on charge would cover the ten percent increase

Oil companies passing on ethanol blend to motoring public

Petroleum firms will be passing on in increments to motorists up to Php0.80 per liter increase in gasoline prices.

The pass-on charge would cover the ten percent increase in volume for ethanol blend in fuels, according to the Department of Energy (DOE).

Based on a Manila Bulletin report, DOE Oil Industry Management Bureau director Atty. Rino Abad said that ethanol-linked adjustment in gas prices first appeared in the cost swings on Tuesday, which is the main reason why oil firms reflected smaller Php0.20 rollback on gasoline products.

Abad explained that if price cuts were based on the Mean of Platts of Singapore (MOPS), consumers would have enjoyed a bigger Php0.40 to Php0.50/liter rollback on gasoline products. 

Since it was still a smaller portion of the aggregate ethanol cost recovery that had been passed on, Abad noted that additional adjustments are still expected in the next rounds of fuel price movements.

He further emphasized the staggered price escalations had been resorted to industry players so they wouldn’t burden consumers with sudden one-time increase. 

Prices at the domestic pumps usually move on a weekly basis, but other cost components are only adjusted based on quarterly pricing, like the ethanol blend on gasoline and coco methyl ester mix on diesel. 

Oil firms said local sourcing of ethanol had been triggering the prices at the gas pumps, especially this time when the cost of local production have been on the upticks.

Government policy supports the procurement of ethanol supply from local producers so this can lead to employment and cash-stream opportunities to local farmers. 

The DOE has not increased the ten percent ethanol blend cap since its implementation in 2009, but already has plans of doing so. There also has been reluctance to go for importation because it won’t benefit local farmers.