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PREDICTING that petroleum products are not likely to
level down anytime soon, Sen. Miguel Zubiri said oil
companies are even expected to jack up pump prices by P8
more, or up to P70 per liter.
Over the
weekend, Chevron Philippines, Inc., Petron Corp.,
Pilipinas Shell Petroleum Corp., Total (Philippines)
Corp. and Unioil Petroleum Philippines Inc. announced
they have increased the prices of diesel, gasoline and
kerosene by another P1.50 a liter.
According to the Department of Energy (DOE), oil
benchmark Dubai crude averaged $126.13 barrel in June
from $119.50 per barrel in May.
DOE also
noted that Mean of Platts Singapore (MOPS)-based
gasoline averaged $139.58 per barrel in June from
$131.13 per barrel in May, while MOPS-based diesel
averaged $168.07 per barrel in June from $161.22 per
barrel in May.
DOE said
the price of liquefied petroleum gas also rose to
$912.50 per metric ton this month from $855.50 per
metric ton in May and $812 per metric ton in April.
“It
[global oil] is hitting $136 per barrel and moving
higher, which means a strong possibility of P70 per
liter [locally],” Zubiri told reporters. “Just to catch
up, gas stations will add another P8 more per liter.
And, this means fare increases for public commuters and
high transport expenses to businesses.”
This
situation, he stressed, requires Congress to fully
support the production of biofuels and their blending
into gasoline and diesel, adding that it also calls for
the early passage of the renewable energy bill that he
said will “bring economic and environmental benefits” as
well.
“If we
produce and blend local bioethanol and biodiesel, we can
sell bioethanol at P34 per liter and jatropha diesel at
P35. We can’t afford to wait for oil prices to bottom
out. Oil speculators, producers and traders will make
hay. It’s our obligation to our people to give them
cheap fuel. No one else will,” he added.
Zubiri
noted that the local sugar industry can produce “enough
ethanol for blending 3 billion liters E85. Today, E85
sells for P39.75 per liter. Since pure ethanol costs P33
per liter to produce locally, it can really lower fuel
costs. Right now, E10 is P3 cheaper than premium
gasoline which is sold at an average of P56 per liter.”
(Ethanol-85 or E85 is 85-percent ethanol and 15-percent
gasoline)
“We can
buy E85 at P35 per liter if the law is implemented
properly wherein biofuels raw materials are value-added
and tax exempt as provided in the Biofuels Law,” he
explained. “We have the technology and skills to produce
very high-quality diesel from jatropha which grows well
in poor soil condition—or marginal lands—without ever
going into fertile agricultural land devoted to food
crops.”
At the
same time, Zubiri clarified that the National Biofuels
Program will be refined further by a Joint
Administrative Order of several departments to identify
steps that investors, producers and gasoline stations
have to take.
“Rising
oil prices also increase our power costs because 50
percent of our power plants use imported fuel to
generate electricity. Suffering from expensive power are
homes, manufacturers of consumer products, food
processors and service providers. Government operations
also will incur bigger expenditures with high-priced oil
and power,” he said.
He
expects an “opening salvo” at the resumption of
congressional sessions in July would include the passage
of the renewable energy bill. “Renewables are the only
viable alternative to expensive power from fossil fuels.
Even the big oil companies have launched their own
renewable energy arms in wind, solar and geothermal
energy.”
Biofuel
initiatives based on extensive research by the
University of the Philippines Los Baños and other State
universities and colleges nationwide, he added, “should
go hand in hand with the promotion of flex-fuel vehicles
for public passenger, cargo transport and private use.”
Zubiri
cited the Flex-fuel vehicles, or FFVs, that are designed
to run on varying blends of unleaded gasoline with
ethanol. He said FFVs can run on pure gasoline, pure
ethanol, or any ratio of gasoline and ethanol. If
gasoline prices are high, motorists can easily shift to
ethanol. “Ford Philippines plans to market FFVs locally
once the necessary infrastructure is in place, such as
the production of local bioethanol.”
“Biofuels and FFVs for mass public transport and private
use will cut our notorious carbon footprints, give
motorists and passengers cheaper fuel and our farmers
bigger incomes” he said, adding that “biofuels
investments by the private sector under the direction of
government agencies such as the Energy and Agriculture
departments will enable us to lower transport fuel
prices while preventing notorious carbon footprints if
we shift to biofuels.”
According to Zubiri, among the proven biofuels reduction
of Green House Gas (GHG) emissions, sugar ethanol
exhibits 87 to 96 percent less GHG emissions versus that
of petroleum. It is superior to ethanol made from corn,
with only 10-20 percent less GHG emission versus
petroleum.”
He noted
that the Ford Group Philippines offered a Flex-Fuel
Vehicle FFV, a Ford Explorer, fueled with E85 from
Seaoil for a demonstration run. “Ford, Seaoil and my
office have actively partnered in various activities
since May. We expect to generate enough public interest
among drivers and transport operators to shift to
biofuels.”
“We
mandated the use of ethanol blend at 5 percent within
two years after the effectivity of the Biofuels Law in
January 2007 and 10 percent from the third year to 2011.
However, there is nothing stopping individuals from
using higher percentages of ethanol-blends like E85.”
The
demo-run was held in conjunction with the celebration of
the 21st anniversary of the Land Transportation
Franchising and Regulatory Board and the launching of
SeaOil E85 at the Mall of Asia One Esplanade. |
