DoE bats for power to freeze biofuel requirement

THE Department of Energy (DoE) expressed support for a Senate measure that would allow the government to suspend on an emergency basis  the biofuel-content requirement for fuel blends, with the chamber also hearing objections to any plans to import biofuel.

“If anything happens, we can extend (our supply) by adding more biofuel (to the official blend). We could also temper a sharp increase in prices by having more biofuel, especially in gas,” Energy Secretary Sharon S. Garin said at a Senate hearing.

The Senate Energy Committee is discussing Senate Bill No. 1485 or the proposed Murang Langis Act, which seeks to grant the government flexibility in setting the proportion of biofuel in the fuel blend, to shield consumers from the surging price of petroleum products.

Ms. Garin added that the DoE is proposing to allow biofuel imports if the price of domestically produced biofuels exceeds that of conventional fuel by at least 5%.

“We will limit (imports) to a certain period so that it is not institutionalized, only on certain circumstances,” she said.

“The proposal is to allow it when the price (of domestic biofuel) exceeds that of pure fuel, pure gas by 5%, for a maximum of one year,” Ms. Garin added.

Renato P. Cabati of the Ethanol Producers Association of the Philippines said suspending the mandatory use of biofuels may affect the income of sugar producers. He said biofuel accounts for up about 13% of sugar farm income.

Philippine Coconut Authority Administrator Dexter R. Buted recommends that the DoE to adopt an agreed-upon trigger for suspending the biofuel blend requirement.

“We believe that without a standardized computation method, price comparisons may be misleading and could lead to inconsistent implementation of the proposed suspension threshold,” he told the hearing.

Mr. Buted said that there should also be appropriate mitigation measures to protect coconut farmers and workers from an influx of imported biofuel.

The Philippines is bracing for further fuel price shocks after the US and Israel attacked Iran, constricting the shipment of petroleum products from the Persian Gulf. — Adrian H. Halili