Manila: Sugar farmers in the Philippines on Wednesday expressed concern before the Senate about the possible impact of suspending the mandatory use of locally produced biofuels, warning that the move could hurt farmers’ incomes, Inquirer.Net reported.
Renato Cabati, head of the Ethanol Producers Association of the Philippines (EPAP), raised the issue during a hearing of the Senate Committee on Energy chaired by Pia Cayetano. The discussion focused on proposed changes to Republic Act No. 9367.
The law requires that fuels sold in the country include a portion of locally produced biofuel.
Under Senate Bill No. 1485, the president could temporarily suspend this requirement for up to one year if the price of blended gasoline or diesel becomes at least five percent higher than that of pure fuel. The suspension would need a recommendation from the Philippine National Biofuels Board and the Department of Energy.
Cabati said suspending the rule could reduce demand for molasses, a by-product of sugar production used to make ethanol. He estimated that sales of molasses account for about 13 percent of a farmer’s income and warned that losing this market would affect farmers’ livelihoods, especially as fertilizer prices have recently increased by about 29 percent.
He noted that the country has about 400,000 hectares of sugarcane farms managed by around 95,000 farmers. Cabati urged lawmakers to support local producers instead of increasing fuel imports, saying locally produced ethanol provides a renewable and home-grown fuel source.
Responding to the concerns, Energy Secretary Sharon Garin said the proposed suspension would only be temporary and would serve as a backup option if fuel supplies become limited, particularly if global tensions continue.
She said the government’s main goal is to prevent further increases in petroleum prices by ensuring enough supply in the market.
Meanwhile, Senator Sherwin Gatchalian pointed out that locally produced biofuels remain more expensive than imported alternatives. According to data from the Department of Energy, the average price of domestic biofuels stood at about ₱75.93 per litre in February, while imported biofuels were priced at around ₱37.58 per litre.
Cabati said local production costs are higher due to lower crop yields, land reforms under the agrarian reform program, climate challenges and logistical difficulties across the country’s more than 7,000 islands. He added that with better government support and inputs, local producers could reduce costs and compete with global suppliers.
Senator Cayetano said lawmakers would consider possible measures, including subsidies, to protect industries that could be affected by the proposed changes.
