Senate Bill 2226, which has been approved by the Senate committees on energy, agriculture and food, and finance, and endorsed by 20 senators for approval, aims to reduce the country’s dependence on imported oil through the mandatory blending of locally-produced biofuels such as bioethanol and biodiesel, into all gasoline and diesel fuel to be sold and used as motor fuel.
According to Perez, "this is a most timely action in light of soaring oil prices the world over."
He noted that oil prices again hit new historic highs this week amid growing geopolitical tensions between the US and Iran over the latter’s nuclear policy.
"The disruption of Nigerian supplies due to militia violence also contributed to the continued ascent in prices," he said.
The former energy official also warned of the continuing volatility of world crude prices which will affect local pump prices.
"With the intense global hunger against oil fuelled by steadily rising demand from the growing economies of China and India, no sign of price relief is foreseen in the immediate future," Perez said.
Perez said he believes the Biofuels Act could serve as catalyst for the country’s economic expansion.
"By promoting the use of locally-produced biofuels as transport fuel, we are increasing our domestic energy supplies and at the same time sustaining our agricultural sector," he said.
In addition, Perez said "we are opening windows for investments in biofuel production. This means fresh capital to flow into the Philippine economy and more jobs."
Perez just recently returned from India for a study on India’s biofuel industry as part of his ongoing research as a Yale World Fellow.