Infighting threatens Philippines' 10% ethanol blending mandate

Infighting between ethanol producers and major oil players heated up in the Philippines, threatening the country’s plans to increase a mandatory ethanol-gasoline blend to 10% by next year. The Independent Philippine Petroleum Companies Association (IPPCA) disputed the claims of the Ethanol Producers Association of the Philippines (EPAP) that the major oil players in the Philippines are against the Biofuels Act of 2006, which calls for reducing dependence on fossil fuels. IPPCA Chairman Fernando Martinez said that the oil companies are complying with the biofuels law and had invested heavily in the necessary infrastructure and material needed to meet the government-mandated blending requirements. An official with the National Biofuels Board told Platts that the Philippines might not move to a 10% ethanol blending mandate in 2011 and might instead remain at 5% because of a lack of local supply. At a 5% blending ratio, the Philippines’ ethanol demand stands at around 182.5 million liters, while local production is at 40 million liters per year. (June 22, 2010)