Biofuel starts flowing in the Philippines today
The Biofuel Act kicked in in the Philippines today, and gas stations around the country started pumping B1 into diesel cars at midnight (local time), according to AHN. The law requires all oil firms to blend coco-methyl ester (CME) into diesel products to at one percent of the total. In two years, the companies will also have to blend ethanol into gas to make E5. Even with this tiny percentage, transport groups have "raised concerns over the possible effects of the implementation of the law on oil prices. There have been fears that oil companies may not be able to prevent prices from going up should there be an impact on prices brought about by the implementation of the one percent biodiesel blend," AHN reports. Total Philippines Corp. estimate their diesel prices would increase by 30 to 50 centavos per liter. Biofuel supporters in the government, on the other hand, point out that there is a zero value-added tax (VAT) on biofuels to minimize the price jump.
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[Source: AHN]
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