Petron starts selling 10% ethanol blend

MANILA, Philippines - The biggest oil firm in the country, Petron Corp., has launched a new product in answer to the government’s call for fuel cleanliness and affordability, introducing gasoline that has a 10% blend of ethanol and which will be P2 cheaper than its current price for unleaded gasoline. Petron’s E10 Premium, which has 10% ethanol and 90% Petron Premium Unleaded Gasoline and an enhanced fuel additive, is the first in the country to meet the required 5% ethanol blend in gasoline by 2009 and 10% by 2011 as stated in the Biofuels Law. The use of ethanol as an additive also made E10 cheaper since it is 2% lower than the price of imported oil. Currently, Petron’s Xtra Unleaded 93 RON is around P58 per liter compared to E10 Premium which is P2 lower at P56. Petron gets ethanol from Brazil but the company has already signed a memorandum of understanding with San Carlos Bioenergy, Inc., which is putting up a plant in San Carlos, Negros Occidental, and Leyte Agri Corp. in Ormoc, Leyte. Both plants are set to supply Petron around 50 million liters of ethanol per year. Petron needs around 60 or 70 million liters per year. Ethanol is a high-octane, water-free alcohol produced from sugarcane and other crops such as corn, cassava and sweet sorghum. It is used as a blending component at 5%-10% concentrations in gasoline. The use of ethanol as an additive is said to reduce greenhouse gas emissions. Petron E10 may be used in a majority of fuel-injected vehicles, whether old or new. But before gassing up, Petron advises that car users consult their car manuals or car dealers first if the car can be refueled with ethanol, especially for carbureted engine models. E10 will be available initially in 14 Petron stations. - Ava Kashima K. Austria, BusinessWorld