Energy finalizing guidelines on 2011 ethanol imports - Almendras

The Energy Department is finalizing the guidelines on ethanol imports to augment supply in time for the full implementation of the biofuel law next year.

“There’s still a question on the appropriate tariff that they want on imported ethanol. So that’s going to be under discussions,” said Energy Secretary Jose Rene Almendras.

He said discussions were focused on the level of tariff for imported ethanol. Ethanol imports are currently levied 1-percent tariff due to the lack of supply.

“I think there was a position that was submitted that it should be 20 percent and there’s another position that says it should only be 10 percent,” he said.

Executive Order 449, signed by President Gloria Arroyo in 2006, reduced the import tariff on ethanol from 10 percent to 1 percent. The directive aimed to jump-start the biofuel program by making ethanol-blended gasoline available at the pump.

Almendras assured local ethanol producers that the imports would fill in the shortfall.

The department expects an additional 68 million liters of ethanol production next year on top of the current 49 million liters. Roxol Energy is expected to produce 30 million liters while Cavite Biofuels will contribute 38 million liters.

The local market needs around 480 million liters next year against local production of 107 million liters, or a deficit of some 373 million liters of ethanol. Alena Mae S. Flores

source: manilastandardtoday