• GILBERT P. BAYORAN
Expressing his concern on plans of the government to allow limited biofuel importation to address rising global oil prices, Senator Francis “Chiz” Escudero, urged the Department of Energy to explore measures that ease fuel costs, without undermining domestic industries, such as sugar and coconut.
In a statement, Escudero said any policy shift should carefully consider its impact on rural livelihoods that rely on the domestic biofuel industry.
In a recent Senate hearing, the DOE was considering a one year allowance for biofuel imports to mitigate oil price surges.
The Confederation of Sugar Producers Associations (CONFED) earlier expressed opposition to proposed amendments to RA 9367, warning that “uncontrolled importation of ethanol would result in loss of demand for molasses, the main feedstock for local bioethanol, and corresponding loss of substantial income for already beleaguered sugarcane farmers.”
Escudero said he recognizes CONFED’s concerns and stressed the importance of long term solutions to address the issue.
Instead of biofuel importation, the senator suggested considering the bringing down of import duties.
Under the Customs Modernization and Tariff Act (CMTA), the government may lower or suspend duties in the interest of general welfare, upon the recommendation of the Department of Economy, Planning and Development, Escudero said.
“Lowering import duties offers immediate consumer relief while preserving the viability of the domestic biofuel sector,” he further said.
Energy officials estimate that importing biofuels could lower pump prices by P1–P2 per liter, but industry players believe the actual reduction may be closer to P0.35.
“Imports may shave a peso off the pump price today, but they will have adverse effects on farmer livelihoods tomorrow,” Escudero said.
Last year, the coco diesel industry generated P46 billion, while ethanol contributed P26 billion—together sustaining more than half a million coconut and sugar farmers nationwide.
Negros Occidental, the country’s sugar capital, remains at the heart of ethanol production, and any temporary importation would directly hit its farmers and undermine decades of investment in the sector.
Escudero said protecting local industries and farmers must remain paramount, noting that the P72 billion biofuel sector is a vital pillar of rural livelihoods and national development.
“Our sugar farmers and coconut growers across the country deserve to be protected in every policy decision. We all share the same goal of easing the burden on consumers while safeguarding the communities that keep these industries alive,” he added.*
