The Philippines is projected to increase its fuel ethanol imports by 20% to 450 million liters in 2025, according to a report by the U.S. Department of Agriculture (USDA), reports Business World.
Citing its Foreign Agricultural Service office in Manila, the USDA said the country’s domestic ethanol production is expected to grow slightly, by about 2%, to 390 million liters next year. However, the report pointed out that challenges in sourcing feedstock continue to limit local production.
“There’s still no immediate fix for the feedstock shortage affecting ethanol production,” the report stated.
In 2024, local ethanol producers supplied about half of the total requirement for blending ethanol into fuel. As of March 2025, 14 ethanol production facilities were accredited in the country, with a total production capacity of 508 million liters per year. However, three of these plants were not in operation, effectively reducing capacity to 396 million liters annually.
Fuel companies in the Philippines are only allowed to import ethanol when local supply falls short—a situation the USDA expects to continue due to the ongoing lack of feedstock.
Under the country’s Biofuels Act of 2006, all liquid fuels must include a biofuel component. As of October 2024, the mandated ethanol blend stood at 3%. The law also prohibits the import of biodiesel.
