The Confederation of Sugar Producers Associations (CONFED) is strongly opposing substitute Senate Bill proposing another amendment to the Biofuels Act of 2006.
The amendment will “allow the importation of biofuel components such as bioethanol and biodiesel regardless of the supply level of locally produced biofuel components, if the price of blended gasoline and/or diesel engine fuels is higher by at least 5 percent compared to pure gasoline and/or diesel engine fuels”, a press release from CONFED said Thursday, March 19.
The approval of the amendment will cause additional damage to the Sugar Industry, which at present is suffering from the effects of low millgate prices, CONFED President Aurelio Gerardo J. Valderrama said in letter Wednesday, March 18, to Senate President Vicente Sotto III.
“CONFED maintains that no importation should be done for as long as there is local supply,” he said.
Under the Biofuels Act, “all liquid fuels for motors and vehicles sold in the Philippines shall contain locally-sourced biofuels components” at an initial blend of 5 percebt bioethanol for gasoline and 1 percebt biodiesel for diesel, subject to increase in blend percentage upon recommendation from the National Biofuels Board., Valderrama said.
Presently, the mandated blends are 10 percent for bioethanol and 3 percent for biodiesel, he added.
CONFED already submitted its earlier position on proposed amendments to the Biofuels Act contained in Senate Bill No. 1485 and Senate Bill No. 1965, which seek to empower the President “to suspend the implementation of the mandatory biofuels blend for not longer than one year, if the price of blended gasoline and/or diesel fuels will be higher by more than 5 per cent compared to the price of pure gasoline and/or diesel”, Valderrama said.
CONFED reiterated that it opposes the suspension of the mandatory blend, and the new amendment “allowing oil companies to import biofuel components regardless of the supply level of these locally-produced biofuel components”.
The Biofuels Act states that, in case of a shortage of locally-produced bioethanol, oil companies would be allowed to import, but only to the extent of the shortage in supply.
Uncontrolled importation of ethanol, CONFED stressed, would result to loss of demand for molasses, the main feedstock for local bioethanol, and corresponding loss of substantial income for the already beleaguered sugarcane farmers.
CONFED also objected to the proposed amendment that “tariffs and taxes earmarked for social amelioration programs for farmers and workers in the domestic biofuels industry will be handled by the DSWD”, instead of the Department of Labor and Employment (DOLE), which presently oversees the implementation of the program for the benefit of workers in the industry.*