Agri chief says 5% biofuel blend to save 'billions of pesos' in petroleum imports

The Philippines is expected to save billions of pesos in imported petroleum after the National Biofuels Board approved a 5 percent mix from 2 percent in the mandated biofuels blend, the Department of Agriculture said Friday.

 

"The Biofuels Board has approved the increase in the mandated blend,” Agriculture Secretary Proceso Alcala told reporters in an interview. “"This will result into billions of pesos in savings for the government because of import substitution," he added.

 

The higher biofuel mix in gasoline, however, may entail higher pump prices and would in part be dependent on coconut and copra prices. "Prices will be market driven,” Alcala noted, adding, “If coconut prices are high, biodiesel prices will also be high." 

 

Still, the Agriculture chief noted the upside to a 5 percent blend: a stronger coconut industry—presently relying on exports to the US and Europe—and lower air pollution with the biofuel component resulting in lower amounts of air pollutants from vehicles emissions. 

 

The board, chaired by the Energy secretary, counts the heads of the Department of Trade and Industry, Department of Science and Technology, Agriculture Department, Department of Finance, Department of Labor and Employment, Philippine Coconut Authority, and Sugar Regulatory Administration as members. — VS, GMA News