San Carlos Bioenergy Inc. (SCBI) announced that it was halting the production of Bioethanol till the issue of imported bioethanol tariff would be addressed by the government that was resulting in a monthly loss of P15 million to their business. Right now imported bioethanol from Brazil is levied only 10% in tariffs that is making their price uncompetitive and resulting in Oil Companies purchasing abroad rather than buying locally.
Bioethanol producers in the Philippines have already expressed their disgust at the government’s inaction on the tariff issue that was harming this fledgeling industry.
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Petron announced that they were looking for more local bioethanol suppliers to execute supply agreements with in order to meet their target of compliance with the Philippine Biofuel Law which mandates 5% mixture of bioethanol in the gasoline they sell at their pumps. Current output shows that the local bioethanol producers can only meet about 38% (83 million liters) of the demand for bioethanol.


