20% tariff on imported ethanol sought Amy R. Remo Philippine Daily Inquirer
November 04, 2009
RAISING TARIFFS on imported ethanol will not only curb the losses of local producers but will also ensure the country’s energy security, according to the Ethanol Producers Association of the Philippines.
During the hearing Wednesday at the Tariff Commission, Epap stressed that the government should support domestic production of ethanol through the imposition of higher tariffs, if it intends to reduce dependence on oil imports.
The group has been pressing for an increase in import tariff on ethanol to 20 percent from 1 percent.
Epap executive director Tetchi Capellan said importation should just be a remedial measure to jumpstart the biofuels program and build the local ethanol industry.
“The spirit and intention of the law is clear—to create a vibrant local ethanol industry by 2011 to supply the domestic demand for clean fuels. Imposing a 20-percent tariff is a solution to achieve this long-term energy security goal,” Capellan said.
Capellan said that if the government will not build a strong ethanol industry, “all the Biofuels Law will do is replace Middle East oil with Brazilian ethanol.”
Under the Biofuels Law, oil companies are mandated to pre-blend 5 percent ethanol in their gasoline products starting this year, and increase this to 10 percent by 2011.
A five-percent minimum blend would require 208.11 million liters of ethanol this year and a 10-percent blend will require 460.63 million liters in 2011.
Only two ethanol plants are producing commercially—the San Carlos Bioenergy Inc. and Leyte Agricultural Inc.
