Philippines reconsiders 2011 target for E10

The Philippines might not move to a 10% ethanol blending mandate in 2011 and instead remain at 5% amid supply concerns, an official with the National Biofuel Board (NBB) said. The country’s 2007 Biofuels Act prescribes that ethanol has to account for at least 5% of total annual gasoline sales from February 2009 and 10% from 2011. But lack of local supply is still a major concern, especially as the period during which companies are allowed to import draws to a close, Rosemary Gumerra, an NBB official said. Meanwhile, the three major oil companies in the Philippines–Petron, Shell and Chevron–smaller independent retailers, ethanol producers and the Department of Energy are currently negotiating on an appropriate ethanol pricing index. The Ethanol Producers Association of the Philippines has proposed an index that reflects the domestic cost of production, while oil companies want an index based on the cost of imported ethanol. (June 10, 2010)