DA wants safeguards against imports of PHL biofuel firms

THE Department of Agriculture (DA) said it has no objection to adjusting the biofuel blend or to imports that will mitigate price increases, as long as the plan contains safeguards to protect domestic producers.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said the DA will not object to proposed amendments to the Biofuels Act, as long as domestically produced biofuels are given priority.

“The important thing is to prioritize local production. Locally produced biofuels should be exhausted first before imports are used,” he told reporters on the sidelines of a Senate hearing on Tuesday.

Mr. Laurel said under such a setup, oil firms should procure biofuels from domestic producers at set prices, while cheaper imports could be tapped to meet higher blending requirements.

“Another option is to establish a minimum buying price for locally produced biofuels. As long as they are buying at that price, there will be no impact on farmers. Cheaper imported biofuel can be used as an additional supply to increase the blend,” he said.

He added that the DA has a plan in place to protect domestic producers should import liberalization go through.

Republic Act No. 9367, or the Biofuels Act of 2006, requires all liquid fuels sold in the Philippines for use in motors and engines to be blended with biofuels.

President Ferdinand R. Marcos, Jr. earlier certified as urgent Senate Bill No. 1965 and House Bill No. 8469, which seek to amend the law in a move to mitigate surging fuel prices.

The Senate version would allow the President to authorize imports of bioethanol and biodiesel once blended fuel prices exceed pure fuel prices by at least 5%, regardless of domestic supply, upon the recommendation of energy officials.

The bill also proposes that tariff revenue from imports be allocated to social amelioration programs for farmers and workers in the biofuels industry.

Mr. Laurel said the DA supports provisions that direct benefits to farmers. “Anything that will go to the farmers, we support,” he said.

The House version, meanwhile, takes a more limited approach by allowing only the suspension of mandatory blending requirements under similar price conditions. — Vonn Andrei E. Villamiel