By Myrna M. Velasco
To ensure smooth-sailing implementation of the Biofuels Law, the Department of Energy (DoE) is seeking resolution from Congress that shall explicitly state that importation of ethanol will still be allowed until local production steps up to meet supply for mandated blends.
“You don’t need to amend the law, we can proceed with the 10-percent blend allowing importation. What we need would be a resolution from Congress, it’s only a resolution not necessarily an amendment of the law…because the oil companies are looking at that provision that allows only importation for the first four years,” Energy assistant secretary Mario Marasigan has explained.
Section 5.2 of the Biofuels Act states that “in the event of supply shortage of locally-produced bioethanol during the four-year period, oil companies shall be allowed to import bioethanol but only to the extent of the shortage as may be determined by the National Biofuels Board.”
Energy Secretary Jose Rene D. Almendras noted that with the decision to allow importation, “clearly, what we’re trying to do here is provide stop-gap until local production can step up and produce what is needed.”
The energy chief himself admitted that local production is still way short to keep pace with ethanol demand. Current output of local producers has just been placed at 49 million liters and that shall further be shored up with the committed output of two more producers at 68 million liters, due in the market next year.
At 5 percent by volume ethanol blend to gasoline, the requirement will be around 200 million liters; while that doubles to 400 million liters with the higher mandatory mix of 10-percent.
The energy chief then assured local ethanol producers that the government has all the best intentions of protecting them; and when warranted support them grow their ethanol ventures.
“On the question – are we going to protect the local manufacturers? Of course we are, that’s why we are already monitoring their actual production so what we just allowed to be imported will be what the local manufacturers would not be able to supply,” Almendras emphasized.
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