Philippines should stop importing ethanol for purpose of blending into gasoline

[ghosthunter]

We have E10 gasoline for the purpose of energy independence.

The concept is the Philippines will produce it's own supply of ethanol to be blended into gasoline. This is supposedly to cut down our reliance of foreign oil and minimize the use of our foreign currency reserves as well.

The belief that ethanol is a "green" fuel is secondary.

In 2010, the clean air law required ALL gasoline sold to be E10 or 10% ethanol blended into gasoline.

Currently, local ethanol producers cannot fill the demand. The government's reaction is to import ethanol from abroad to "temporarily" fill the demand.

Why not just suspend the E10 portion of the clean air act? Or make it "voluntary" for the oil firms to follow?

The fact that the country is importing ethanol is defeating the reasons behind the law, which is to become energy self-sufficient and to conserve our foreign currency reserves.



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Personally I am against the use of E10 gasoline for the following reasons:

-ethanol has a lower energy content per volume than gasoline. This results in reduced fuel mileage, requiring the cars to burn more fuel for the same distance.

-ethanol blended gasoline will become stale or "expires" much quicker in the fuel of the vehicle. In my personal experience, it takes only four weeks for a talk of E10 gasoline to become un-usable. Regular gasoline can remain good in the fuel tank for more than four or five months.

-ethanol blended gasoline is not compatible to older engines, especially those engines with carburators. Even more modern EFI engines may not be compatible because of ethanol reacting with certain parts of the fuel system resulting in cracks and leaks. Undetected, this may cause fires and harm to the vehicle occupants.

[uls]

the biofuels law is stupid

the intention is to reduce fuel imports

but local ethanol producers can't meet demand

so oil companies, required by law to use 10% ethanol, have to import ethanol to comply with that law

DUH

Petron will be importing ethanol coz its local ethanol supplier (SCBI) can't produce enough ethanol

other oil companies like Shell import ethanol

Pilipinas Shell imports ethanol from Brazil

[Type 100]

Agreed.

Like most things that are "eco-friendly" it's really being pushed because there's money to be made.

[uls]

ang mahirap sa mga bureaucrats they have no real world experience in anything

on paper, being green and being energy independent sounds good

so implement sila agad

pero hindi nila iniintindi ang mga details

ok, sige... to reduce fuel imports, gawa sila batas that requires oil companies to use ethanol in their products

oil companies will buy ethanol from local producers

instant reduction in fuel imports diba?

but one important detail overlooked by the bureaucrats: local ethanol producers cannot produce enough ethanol to meet local demand

so oil companies have to import ethanol

very good

---

like those CNG buses

the intention is good

NG = less pollution

govt encourages investors to import CNG buses

govt tells investors oil companies will supply CNG

overlooked detail: oil companies won't bother supplying CNG to a tiny number of CNG buses

the quantity is too small that investing in infrastructure is NOT worth it

stupid bureaucrats

[isa1023]

Can we, as motorists, do something about it?

[renzo_d10]

Agree.

Used to have a better mileage when I still had regular gasoline. But when I started using e10, it became low and bad. And the fear of my engine would break soon enough because of continuous use of e10 is still there. :blue:

[uls]

http://www.argusmedia.com/pages/News...14338&menu=yes

Singapore, 14 July (Argus) — Philippine refiner Petron may consider jointly importing ethanol with other oil companies to fulfil the country's ethanol mandate as domestic supplies remain inadequate.

Ethanol output from the Philippines will only reach 80mn l/yr (1,400 b/d) mainly from San Carlos BioEnergy and Roxol Energy. A further 50mn l/yr will come from Green Futures' plant when it begins commercial operations next year.

But this will still leave the country with a shortfall of around 90mn l/yr to satisfy the blending mandate, a senior Petron official said.

Nearly all of the Philippines' imported ethanol comes from Brazil, Petron said.

Discussions are continuing to buy imported ethanol, mainly fuel grade anhydrous from Thailand, the official said.

Thailand has ample availability of anhydrous ethanol as only 60-70pc of the country's ethanol capacity is utilised. Thailand has an excess of around 4mn t of cassava each year, which can be converted to 1.8mn l/d of ethanol, Bangkok-based traders said. Cassava feedstock accounts for a third of Thai ethanol production.

hahaha

kaya wala ako bilib sa mga govt "planners" na yan

what are those people anyway?

economists? academics? university professors?

people with doctorates and PhDs?

they don't have any real world experience

they have never run businesses in their lives

not even a sari sari store

and they're supposed to make plans for the real world?

that above is an example of their real world planning

FAIL

[jave]

When does 'common sense' and 'government' mix?

In this country, never.

There's your answer.

[nickriingen]

http://www.argusmedia.com/pages/News...14338&menu=yes


hahaha

kaya wala ako bilib sa mga govt "planners" na yan

what are those people anyway?

economists? academics? university professors?

people with doctorates and PhDs?

they don't have any real world experience

they have never run businesses in their lives

not even a sari sari store

and they're supposed to make plans for the real world?

that above is an example of their real world planning

FAIL

The trouble with bureaucrats appointed by the past administration is that they know nothing about their jobs. Take for example DOE, DOTC, DPWH. They are mostly retired and puppet generals appointed as Secretary, Undersecretary, Assistant Secretary. Hope the new administration will avoid this mistake.

[CVT]

How then can we push the current administration to suspend this stupid policy?

10.4K:shazam:

[uls]

the govt should just leave the market alone to determine supply and demand

like auto LPG

govt didnt have to do anything

govt didnt have to push auto LPG

the market for auto LPG developed all by itself

[garfield_08]

but one important detail overlooked by the bureaucrats: local ethanol producers cannot produce enough ethanol to meet local demand

overlooked detail: oil companies won't bother supplying CNG to a tiny number of CNG buses

the quantity is too small that investing in infrastructure is NOT worth it

stupid bureaucrats

i think the finer details are not overlooked, they were INTENTIONALLY OVERLOOKED

pardon me, but these people are not stupid: they have very high credentials and graduated from prestigious universities here and abroad. the truth is they already saw the impending problems of implementing this law. what they did was make the most out of it - by making sure their bank accounts are well fed from the consequences that arise after the law was passed (e.g. mandate = compulsory implementation but not enough production = importation)

let us not forget what the government did upon the implementation of the Oil Deregulation Law (why sell your shares of Petron - the only oil company that you can control the pump price, after implementing the ODL???) sa ginawa nila na yun parang binenta na nila Pilipinas... ODL is a good law, and the objective was good, but the Government let go of their ace they're holding... sayang.

these people will eventually get what is due to them... i still believe in karma.

[uls]

i think the finer details are not overlooked, they were INTENTIONALLY OVERLOOKED

pardon me, but these people are not stupid: they have very high credentials and graduated from prestigious universities here and abroad. the truth is they already saw the impending problems of implementing this law. what they did was make the most out of it - by making sure their bank accounts are well fed from the consequences that arise after the law was passed (e.g. mandate = compulsory implementation but not enough production = importation)

conspiracy theory territory na po yan

you're saying they made that biofuel law knowing that local ethanol production is inadequate and oil companies will have to import ethanol and some govt people profit from the ethanol imports?

like the whole thing was all planned out from the beginning?

i think you're overestimating them

they're not that competent

question: if they are making money from ethanol imports, from what part of the transaction are they getting money from?

from the ethanol exporters (commission)?

from the ethanol importers (lagay)?

both?

let us not forget what the government did upon the implementation of the Oil Deregulation Law (why sell your shares of Petron - the only oil company that you can control the pump price, after implementing the ODL???) sa ginawa nila na yun parang binenta na nila Pilipinas... ODL is a good law, and the objective was good, but the Government let go of their ace they're holding... sayang.

even if Petron is wholly owned by the govt, i don't think they can control pump prices

Petron buys crude oil from abroad and refines the crude oil here

so Petron's cost of producing finished products is no different from the production cost of other oil companies like Shell

how exactly can the govt control Petron's pump price if it owns Petron?

the govt makes Petron sell at a loss and the govt shoulders the loss?

the same way NFA buys rice and sells the rice at a loss to subsidize the poor?

so the cost falls on the taxpayer

is that your point?

[garfield_08]

conspiracy theory territory na po yan

question: if they are making money from ethanol imports, from what part of the transaction are they getting money from?

from the ethanol exporters (commission)?

from the ethanol importers (lagay)?

both?



even if Petron is wholly owned by the govt, i don't think they can control pump prices...

....the govt makes Petron sell at a loss and the govt shoulders the loss?

the same way NFA buys rice and sells the rice at a loss to subsidize the poor?

so the cost falls on the taxpayer

is that your point?

conspiracy theory perhaps.

on the question: if they are making money from ethanol imports, from what part of the transaction are they getting money from? ans. both.

on the question: should the govt subsidized the fuel sold by Petron to lower the pump price if they still hold the majority of shares? ans. yes

on the question: the subsidy cost falls on the taxpayer? ans. yes. at least we get some benefit on the taxes we paid. think of it as a sort of rebate.

[vito corleone]

stupid people in the gov't--and they won't admit it

napansin ko rin na bumaba ang fuel efficiency ng lancer ko mula noong wala nang mabiling 100% petrol. . .dati naglalaro pa sa pagitan ng 8 and 9 km/li, ngayon hindi man lang umabot ng 7 km/li