OIL giant Petron Corp. is willing to shoulder the cost of any damage brought about by its biofuel products on vehicles.
Wilfredo Toledo, Petron Philippines Corp. technical department general manager, said the major challenge in blending biofuel into conventional fuel is the presence of certain biochemicals that may damage a car’s fuel system.
“We can assure our customer we will be answerable for any car engine problems,” he said. He added that Petron has allotted funds for “isolated cases” to protect its brand name and integrity.
He said Petron is investing heavily in research and development to be able “to identify interventions, innovations and corrective measures to counter this problem.”
“Biofuel is now mandated by law in the Philippines. Petron, as a responsible telemarketer, is willing to address this problem (damage on engines) by absorbing any financial cost to customers whose cars are affected by our product,” he told Sun.Star Cebu yesterday at the 6th Asian Petroleum Technology Symposium at the Hilton Cebu Resort and Spa.
More assessment
Toledo said while the company has anticipated car problems arising from the mandated one-percent biofuel blend, Petron has not received any complaints from customers so far.
“Worldwide, biofuels have already posted many major developments at the commercial level in meeting energy needs, particularly as transport fuel. But (use of) biofuel … needs more reassessment and research (vis-à-vis vehicle engine technology), and a cooperative approach between oil companies and car manufacturers,” Energy Secretary Angelo Reyes said in a statement.
Toledo, however, pointed out that retailing biofuel poses additional expenses for Petron.
“Prices of diesel alone is at P46 (per liter). With the blend, selling price should be at P52 but we will not pass this additional cost to the public,” he said.
While the Philippine Government, under Republic Act (RA) 9637 or the Biofuels Act of 2006, directs oil companies to add a one-percent biofuel blend to conventional fuel, Petron produces 1.03- to 1.05-percent blend, said Toledo.
Blend requirements
Under the Biofuels Law, all gas stations are required to sell diesel with a minimum of one-percent coco metyl ester or B1 blend.
RA 9367 also requires oil companies to raise the blend to 10 percent within four years, upon the approval of the National Biofuels Board (NBB), which will be created under the law.
The NBB will be tasked, among others, to assess the impact of the use of bioethanol and the availability of the local supply of bioethanol fuel.
Although Petron stands to lose part of its revenues to comply with the law, Toledo said the company has been reducing some of its production and operating costs.
“We are ready to put in any intervention, magic potions, regardless of the cost to satisfy our motoring public,” he addressed the delegates of the 6th Asian Petroleum Technology Symposium.
The Japan Petroleum Energy Center (JPEC) and the Department of Energy are the main organizers of the symposium, which aims to standardize fuel quality and petroleum products distribution within Southeast Asia.
“With the theme, improvement of fuel quality and refinery environment, we hope to get the best practices, technology-wise, among oil players in Asia,” said JPEC director Kenji Nita.
Some 70 delegates from Japan, Thailand, the Philippines, Indonesia and Vietnam participated in the three-day event that culminates today. (MMM)
