Sugar producers push for biofuels as means of mitigating fuel price volatility

SUGAR MILLERS are urging stronger government support for biofuels, saying bioethanol blending can help cushion the Philippines from volatile global oil prices.

In a statement, the Philippine Sugar Millers Association (PSMA) said using bioethanol in gasoline reduces reliance on imported petroleum products and helps stabilize pump prices.

“Every liter of bioethanol blended into gasoline displaces a liter of imported oil exposed to geopolitical risk,” PSMA Executive Director Jesus L. Barrera was quoted as saying in the statement.

Mr. Barrera said the increased use of bioethanol, which is primarily derived from sugar and molasses, will provide an “immediate and practical buffer” for motorists and the broader economy from global supply disruptions.

The PSMA said global oil markets have become increasingly volatile due to the fighting in and around Iran.

The Biofuels Act of 2006 requires all liquid fuels sold in the country for use in motors and engines must be blended with biofuels. Since 2012, gasoline has been sold as 10% bioethanol blend.

Aside from reducing reliance on imported oil, the PSMA said bioethanol also improves gasoline quality by serving as an oxygenate and octane enhancer that promotes cleaner combustion and better engine performance.

Compared with imported synthetic additives, bioethanol is cleaner and more cost-effective, the group added.

The PSMA said the biofuel program also provides economic support to the domestic sugar industry and rural communities.

Aurelio Gerardo Valderrama, Jr., president of the Confederation of Sugar Producers Associations, said the biofuel industry serves as a stable market for sugarcane-derived products and supports the livelihoods of sugar farmers.

“Maintaining the domestic bioethanol blending mandate ensures that fuel expenditures stay within the local economy while sustaining the livelihoods of farmers and workers,” he said in the statement.

Separately, the Sugar Regulatory Administration (SRA) said it met with various industry participants, including millers and producers, to discuss suggestions for establishing government-mandated minimum farmgate and millgate prices for sugar.

In a statement, the SRA said sugar producers are also urging the government to control imports of artificial sweeteners and to roll out a sugar-buying program at pre-determined prices. 

The SRA said it is collating recommendations from sugar producers on measures that the government can take to mitigate the effects of the war in the Middle East.

“The groups anticipate the increase in fuel, fertilizer, and other input costs, and how the government could possibly help,” the SRA said. — Vonn Andrei E. Villamiel