Philippine SRA Rejects Call for More Ethanol Imports

Despite rising fuel prices, the Philippines' Sugar Regulatory Administration (SRA) has set aside calls by oil players to allow increased imports of ethanol products to effectively lower gas pump prices.

Reports came out that the Independent Petroleum Producers Association (IPPCA) was pushing for 100% imported ethanol to lower petroleum pump prices as sugar-based ethanol from the country was more expensive than imported biofuel. However, planning and policy manager at the SRA, Rosemarie Gumera, emphasized that the government's bioethanol program requires oil companies to prioritize procurement and development of the local ethanol sector.

SRA expects local ethanol production to meet at least half of the mandated biofuel mix once Cavite Biofuels and Pro-Green, formerly known as Emperador Distillery, start operations by next year. Once online, these distillers are expected to narrow the gap in the country's compliance with the ethanol mandate.

The Philippines' current Biofuels Law mandates the use of E10 blended gasoline in the market, which contains 10-percent ethanol.