INDEPENDENT oil players scored the Ethanol Producers Association of the Philippines (EPAP) for claiming that members of the Independent Philippine Petroleum Companies Association (IPPCA) are against the Bio-Fuels Act.
"That claim was farthest from the truth as the oil industry players share the same vision of energy independence, protection of public health and ecosystems and rural employment for the people," said Fernando Martinez, IPPCA Chairman.
"This is the main reason why despite the huge investments required for the oil companies to comply in terms of upgrading equipments, oil companies are complying with the provisions of the Bio-Fuels Act," he added.
EPAP Executive Director Tetchi Cruz-Capellan accused the oil companies of refusal to heed the law, which mandated all liquid fuels for motors and engines in the country to contain locally-sourced biofuels.
Capellan said EPAP supported the move of the Department of Energy (DOE) to issue a circular on biofuels.
Martinez said EPAP is barking the wrong tree adding that instead of making the local oil companies the bad guy, it would do well for her association to increase their efficiency and production of ethanol that will be enough for the country's needs.
"What the oil companies do not want is a situation, wherein we will be forced to subsidize the inefficiency of the local industry by forcing us to pay for prices which are almost double that of the cost of the same product from other countries," he said.
Martinez added: "Forcing the oil companies to pay for higher prices from the local market and increasing the tariff imposed on the ethanol will result to increased fuel costs for the consumers. This is definitely not what the law had intended."
The EPAP, according to him, can start by increasing local production of ethanol such as what leading ethanol producers-Brazil, Vietnam and Thailand-are doing.
Brazil is the recognized global leader in ethanol production, exporting some 3.5 billion liters of ethanol on an annual basis and supplying the domestic market of approximately 14 billion liters in 2007.
Fuel ethanol in Brazil displaces no less than 40 percent of gasoline that would otherwise be used.
Based on EPAP's figure, there are only 80 million liters of local ethanol that will be produced this year by San Carlos Bioenergy and Roxol Energy Inc. Another 50 million liters are scheduled to be supplied by Green Futures Incorporated when its commercial operations begin next year.
Likewise, Martinez reminded the EPAP that the Bio-Fuels Act was not passed solely to benefit the sugar industry adding that what the law intended was to "develop and utilize indigenous and renewable clean energy sources to reduce dependence on imported fuels."
"This means that other feedstocks for ethanol can be used just like cassava, which in turn will not be as expensive as that of sugar," he explained.
Forcing the local oil firms to source their ethanol requirements domestically, he said would only be detrimental to the public as they will have to contend with higher prices, effectively defeating the spirit of the law.
Martinez pointed that oil players, especially the independent companies, support the move to increase the ethanol blend to 10 percent by 2011 provided that the government will also provide an easier method to import the much-needed products. (MSN/Sunnex)