DoE slows down nationwide rollout of biofuels on May 6
Monday, March 19, 2007
By MYRNA M. VELASCO
The Department of Energy (DoE) has softened its position on the initial plan to mandate a nationwide rollout of the 1.0 percent blend of coco methyl ester (CME) to diesel products starting May 6 this year as mandated under the Biofuels Act.
DoE director Mario Marasigan clarified that while the sale of CME-blended products will still kick off at the pumps on May 6, he noted they are not expecting that this can be implemented in all gasoline stations nationwide.
"We expect the oil companies to start selling products with biofuels blend starting May but we do not expect that it can be done simultaneously all over the country," he said.
The oil companies also raised to the DoE the possibility that pump prices will go up once the biofuel-blended products start selling at the pumps.
Given all the problems on logistics and other major concerns such as price impacts, the energy department has to back down on the bid of the oil companies that a longer transition for country-wide implementation must be observed.
The major oil companies which have the biggest networks of gasoline stations are batting for a one-year transition to fully comply with the mandate.
Of course, this proposal is being opposed by the suppliers of CME because this would mean initial loss of market for them.
During the five-day consultation with various stakeholders at the Heritage Hotel last week, the energy department was apprised of the string of problems confronting each and every player if the implementation of the mandate is done with undue haste.
The Philippines is taking its ‘acid test’ on the utilization of biofuels because it is the first Asian country to embrace such policy.
Even the more developed economies, like those in the European Union and United States, did not dare to interpose a mandate; instead they just encouraged oil companies and motorists to shift to such alternatives on a voluntary basis.
With the enormous issues still unresolved, the energy department has been promising other stakeholders that the government, in consultation with the National Biofuels Board (NBB), will do its share in deeply studying these concerns.
The NBB takes its mandate from the law to draft the implementing rules and regulations for the policy on biofuels utilization. (MMV)
posted by philpower @ 9:09 AM,
