Manila: The Department of Energy has proposed allowing limited imports of biofuels to help ease rising gasoline prices, as lawmakers review changes to the Biofuels Act of 2006 amid growing concerns over global oil costs, Manila Bulletin reported.
Speaking during a hearing of the Senate Committee on Energy, Energy Secretary Sharon Garin said the country currently has enough refined petroleum products, including gasoline, kerosene and diesel, to last until April. However, she warned that higher global oil prices are likely to push up fuel prices at the pump.
Garin said increasing the supply of biofuels, particularly for gasoline, could help soften the expected rise in prices. She also noted that tensions in the Middle East remain a risk to global oil markets.
The hearing discussed Senate Bill No. 1485, which proposes changes to the Biofuels Act of 2006. The bill would allow the government to suspend the required blending of biofuels in gasoline and diesel for up to one year if the price of blended fuel rises at least five percent above the price of pure gasoline or diesel.
Pia Cayetano said the proposal aims to protect households from sudden increases in fuel prices while maintaining long-term energy security.
Under current rules, the country can import fuel only after local supplies have been exhausted. Garin explained that the proposed measure would allow imports when domestic biofuel prices are at least five percent higher than pure fuel prices, but only for a limited period of up to one year.
At present, locally produced biofuel costs around ₱75 per litre, while imported biofuel is priced at about ₱37 per litre, which is even lower than the average gasoline cost of about ₱43 per litre.
Local ethanol producers have raised concerns about the proposal, warning that it could affect nearly 100,000 farmers who supply molasses, the main raw material used to produce ethanol for biofuels.
Garin said the government is trying to strike a balance between protecting consumers from higher fuel prices and supporting the local biofuel sector. She stressed that the proposal is temporary and would not be intended to weaken the domestic industry.
Meanwhile, Sherwin Gatchalian, chairman of the Senate Committee on Finance, said lawmakers must carefully balance consumer interests with the need to support local ethanol producers. He noted that imported ethanol is currently cheaper than domestically produced fuel, creating a challenge for policymakers.
The Biofuels Act of 2006 currently requires fuel companies to blend gasoline with locally produced bioethanol to reduce dependence on imported fuels. Several lawmakers are now seeking to temporarily suspend this rule to allow the use of cheaper imported bioethanol.
