PH fuel ethanol use to rise 5%

The Philippines’ fuel ethanol consumption is projected to grow by as much as five percent this year, as the steady growth of car sales and the government’s large-scale infrastructure projects drive high demand beyond conventional fuel sources, according to the United States Department of Agriculture (USDA).

- By DEXTER BARRO II

In its “Biofuels Annual” report, the USDA’s Foreign Agricultural Service (FAS) estimated that ethanol consumption will reach 840 million liters this year, up from 797 million liters in 2024.

The higher demand was attributed to the increase in fuel pool size and the steady uptake of voluntary E20, or the 20 percent ethanol blended with gasoline.

While E20 gasoline blending contributed minimally to fuel ethanol consumption in the first half of the year, the USDA-FAS estimates a larger contribution in the second half as more fuel retailers begin offering E20 at gas stations.

“The prevailing uncertainty on vehicle compatibility results in slow uptake of E20 gasoline, which fuel retailers hope to address to increase sales,” the report read.

Last year, the Department of Energy (DOE) allowed oil companies to offer E20 as a voluntary option, lifting the ethanol blend in gasoline beyond the long-standing 10 percent (E10) level that had been in place since 2012.