The country’s consumption of biofuels is expected to post a substantial increase by the end of the year not only because of loosening quarantine restrictions but also due to the growing demand for ethanol.
In a report, the United States Department of Agriculture (USDA) has projected ethanol production in the Philippines to expand by 18 percent to 330 million liters by year-end with biodiesel seen to decrease by 4 percent to 180 million liters.
The USDA said this should continue to fill the gap and offset higher pump prices.
With the increased biodiesel blend not yet implemented, USDA also said that the country’s capacity to produce biofuel “is more than enough to cover the required blending for 12 billion liters of diesel per year.”
“The excess capacity of fuel ethanol plants compared to local feedstock available is due to the unexpected shift of seven potable alcohol producers to fuel ethanol due to the excise tax of 22 percent on potable alcohol,” it added.
The Philippine has enacted two policies to promote renewable energy to reduce the country’s dependence on imported fuels by promoting the use of biofuels.