By Myrna M. Velasco
To lift up the Biofuels Law from where it has been falling short, oil industry leader Petron Corporation is opening its door for offers of supply contracts on domestically-produced ethanol.
“We are showing our willingness to take on ethanol supply contracts with domestic producers…we would want to do it to be able to show our support for the successful implementation of the law,” Petron president Eric O. Recto said.
The entire oil industry is at crossroads and basically clueless as to what will happen next on the mandate for higher ethanol blend, which prescribes 10-percent mix of bioethanol to gasoline products.
By February 2011, the Biofuels law prescribes that all gasoline pumps shall already be carrying ethanol-blended products. But there’s a catch, the law sets preference on locally-produced ethanol to meet supply for that mandated blend.
However, despite promise of investments in the four years that passed, there have not been much capital flowing to shore up domestic ethanol supply. Of the 400 million liters required by the oil industry to meet the 10-percent blend, it would even be a stretch to expect that local supply can plug at least half of the demand.
Given that, the Department of Energy is in a quandary as to carrying out the mandate. Hence, it is now referring that particular concern to Congress for whatever amendments or clarifications it may lay down to straighten out the Biofuels Law’s provisions.
Many affected stakeholders, including the oil firms, car manufacturers and even ethanol producers, shared the view that the time may have already come for the government to review the policy, given fledgling investments and the looming concerns on its implementation.
On Petron’s part, Recto noted that as far as the law is concerned “there’s still a lot of room for enhancement” so enforcement processes may also improve.
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