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Oil firms to sell biodiesel before May 6

July 1st, 2009 Biodiesel none Comments

An independent oil company has started selling biodiesel in 120 gasoline stations nationwide while other oil players said they would try to make the environment-friendly fuel available ahead of the May 6 deadline set by the Energy department. The Biofuels Act of 2006 signed by President Gloria Macapagal- Arroyo last Jan. 17 mandates oil firms to sell diesel with a 1% coco- methyl ester (CME) blend. The law is aimed at reducing the country’s dependence on imported fuel by providing environment-friendly alternatives to fossil fuel. The required 1% biodiesel blend is seen to increase the price of the fuel by 30 to 50 centavos per liter. Oil firm officials, however, said they would not immediately increase the price of the diesel because they still have to study the corresponding adjustments for the mix. In a statement, Flying V Chairman Ramon Villavicencio said that the company’s 120 stations are now selling diesel with a 1% CME blend. Flying V, he said, currently subsidizes the additional cost of CME that should be passed on to consumers. In a phone interview, Petron Corp. Public Affairs Manager Virginia Ruivivar said her firm “won’t implement the increase immediately after making the biodiesel available because we still have to study the actual [price] adjustments we should make.” “The 30-50 centavos/liter increase is the initial estimate by the industry,” she said. She said Petron would offer biodiesel on the week of April 29- May 5. Pilipinas Shell Petroleum Corp. General Manager Roberto Kanapi, for his part, said in a separate interview that Shell’s biodiesel would be available in some gasoline stations before May 6. He said while there would be an upward adjustment in diesel prices because of the required mix, Shell was yet to see if it would pass on the higher costs to consumers. “We still have to study the amount of the price adjustments,” he noted. Meanwhile, Caltex Philippines Manager Mark C. Quebral said his firm would make biodiesel available in some gasoline stations by next week. He said diesel prices won’t go up on May 6. Data gathered from the Energy department show that diesel as of April 17 was sold at P30.87 to P34.15 a liter. Biofuel refers to bioethanol, biodiesel, and other motor fuels made from organic matter available on a renewable or recurring basis. Feedstock for biofuel includes animal wastes and plant materials such as sugarcane, corn, molasses, grains, cassava and coconut. Fossil fuels, such as coal and petroleum, are limited and harmful to the environment. Also for gasoline The biofuel law also states that oil firms must blend 1% of ethanol in their gasoline products by 2009. The law’s implementing rules and regulations have yet to be completed. The Energy department however ruled that oil firms must sell biodiesel starting May 6.

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