The country's ethanol producers are asking the Department of Energy to rescind a memorandum circular calling for a 10 percent ethanol blend by August as part of measures to mitigate the impact of high oil prices to the consuming public, a government press release said.
Ethanol Producers Association of the Philippines president, Jose Maria Zabaleta, in separate letters to the DOE and Department of Agriculture, raised concern over the high world oil prices.
Zabaleta said the ethanol producers comprising both farmers and distilleries are committed to help government mitigate the rising cost of gasoline.
"We call on the DOE to rescind its earlier circular, increase the blending mandate of ethanol to 10 percent now, and ensure through an Executive Order, a one-year local supply from ethanol producers at current pump prices…,” Zabaleta said.
He also included the importation of the remaining ethanol requirements of the country from other Asean countries to lessen the impact of rising oil prices in the request.
DOE issued circular no. 2011-02-0001 mandating the implementation of the 10 percent blend of ethanol by volume into all gasoline fuel distributed and sold by every oil company in the country, subject to exemption of certain grades starting August 6.
EPAP said the Middle East situation is nearing crisis level and the prices of oil in the global market are becoming highly volatile to the detriment of the Philippine consuming public.
He said EPAP expects the volatility in world oil prices to remain in the market and perhaps keep oil at the "high" range.
Zabaleta said no one knows for sure how the international oil market will behave in the coming months or when the political situation in the Middle East will stabilize.
"What is definite however, is our continued dependence on imported oil. Such dependence puts the Filipino people and our national economy in a very vulnerable spot. We will remain at the mercy of the oil companies unless there is a clear roadmap addressing our vulnerabilities," he said.
Zabaleta said government can tap production from the local ethanol producers to reduce dependence on imported oil.
Leyte Agricultural Corp., San Carlos Bioenergy and ROXOL Holdings have annual production capacities of about 75 million liters of ethanol.
