Higher bioethanol blend eyed as gas prices soar

MANILA, Philippines — With gasoline prices hovering above P100 per liter, the government is looking to raise the mandatory bioethanol blend to help ease pressure at domestic pumps.

Energy Undersecretary Alessandro Sales said the National Biofuels Board is weighing a hike in the mandated blend to 15 percent or E15 from the current 10 percent or E10.

“It may have the beneficial effect of tempering gasoline prices,” Sales said in a recent interview.

Bioethanol is a renewable, high-octane alcohol fuel derived from plants such as sugarcane and corn and blended with gasoline for use in vehicles.

Under the Biofuels Act of 2006, oil companies are required to blend at least 10 percent bioethanol by volume into all gasoline sold and distributed nationwide.

At E15, gasoline would contain 15 percent bioethanol and 85 percent conventional gasoline by volume.

Sales said E20 is currently available on a voluntary basis but noted that not all car manufacturers guarantee that their vehicles are compatible with the higher blend.

“But at E15, many vehicles are already onboarded, so your warranty won’t be voided,” he said.

The Department of Energy and the Department of Agriculture are exploring cheaper, more diverse feedstocks to make locally produced bioethanol more competitive with imported fuel.

In particular, the agencies are examining the potential of molasses and sugarcane juice from the sugar industry, as well as locally produced corn, as alternative feedstocks.

“Another thing about bioethanol is that imported ethanol is cheaper. It has an effect on pump prices. It helps bring pump prices down,” Sales said.

Gasoline prices rose by as much as P1.56 per liter this week, marking a second consecutive round of increases.

In Metro Manila, gasoline currently sells for as high as P107.46 per liter, according to the latest industry data.