Sugar millers and planters groups on Tuesday, March 10, called for stronger government support for locally produced biofuels as a practical defense against global oil volatility and surging fuel prices triggered by unrest in the Middle East.
The Philippine Sugar Millers Association (PSMA) and the Confederation of Sugar Producers Association (CONFED ), in a press statement, said the use of domestic bioethanol in gasoline blending reduces dependence on imported petroleum, helping stabilize pump prices while keeping a portion of fuel expenditures circulating within the Philippine economy.
PSMA and CONFED agreed to jointly urge government towards this direction after meeting with other industry stakeholders at the Sugar Regulatory Administration – Bacolod Office Monday to discuss possible solutions to the industry’s immediate problems, as well as tackle measures which can help mitigate the effects of the Middle East crisis to sugar farmers, CONFED President Aurelio Gerardo J. Valderrama Jr. said.
The use of domestic bioethanol in gasoline blending reduces dependence on imported petroleum, helping stabilize pump prices while keeping fuel expenditures circulating within the Philippine economy, he said.
“Every liter of locally produced bioethanol blended into gasoline displaces a liter of imported oil exposed to geopolitical risks,” PSMA Executive Director Jesus L. Barrera said.
“This provides an immediate and practical buffer that helps protect Filipino motorists and the broader economy from global supply disruptions,” he said.
Valderrama pointed out that the sugar industry creates a stable market for sugarcane-derived products, particularly bioethanol, while supporting hundreds of thousands of farmers and workers nationwide.
“Maintaining the domestic bioethanol blending mandate ensures that fuel expenditures stay within the local economy while sustaining the livelihoods of farmers and workers across the country,” Valderrama said.
Industry data show that gasoline blending prices in 2025 remained within normal global market behavior. In contrast, the landed cost of imported gasoline has been volatile and recently increased amid supply concerns linked to geopolitical tensions, the PSMA and CONFED statement said.
“Beyond reducing fuel import dependence, bioethanol also improves gasoline quality. It serves as an oxygenate and octane enhancer that promotes cleaner combustion and better engine performance. Compared with imported synthetic additives, bioethanol remains a cleaner and more cost-effective solution,” it added.
CONFED and PSMA said that strengthening the country’s biofuels program supports both energy security and rural economic stability, particularly at a time when global energy markets remain vulnerable to geopolitical shocks.*
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