Gov't eyes cheaper materials for bioethanol to lower gasoline prices

The Department of Agriculture (DA) and the Department of Energy (DOE) are looking for cheaper materials to make bioethanol in an effort to lower gasoline prices as the government plans to increase the ethanol content in gasoline from 10% to 15%.

In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said both agencies are looking at various feedstocks, including molasses, sugarcane juice and, particularly, corn, to support higher ethanol production.

“We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” he said.

The DA noted that an increase in feedstock costs could lead to a P1 increase in ethanol prices.

Ethanol production in the Philippines ranges from 325 million to 385 million liters annually using sugarcane-based feedstocks, although local plants have a combined production capacity of more than 500 million liters.

The DA said it is exploring ways to boost corn yields through the use of better seeds and modern machinery, as well as direct supply agreements between farmers and ethanol plants.

“Corn can be harvested within 90 to 110 days, potentially allowing supply to respond relatively quickly to increased demand. Plus, corn used for bioethanol will still have DDGS as a byproduct which feed manufacturers can use as a high protein source,” the DA said.

However, the department said it is taking care not to drive up corn prices amid potentially higher demand from ethanol producers.

The government is also finalizing a Philippine National Standard for bioethanol, with the draft currently undergoing public consultation, the DA said.

Meanwhile, the Philippine Coconut Authority (PCA) earlier said the government is looking to raise the coco-methyl ester (CME) blend in diesel fuel to 5%.

A higher CME blend is expected to boost demand for coconut oil and copra, potentially benefiting coconut farmers through increased demand for their produce. — MCG, GMA News