Manila slashes ethanol import duty to 1% from 10% to spur demand

Manila slashes ethanol import duty to 1% from 10% to spur demand

Singapore (Platts)--4Aug2005

The Philippines has slashed import tariffs on ethanol from 10% to 1% to
encourage demand for the gasoline blendstock and lower expensive oil imports,
a Department of Energy official said Thursday. The country currently does not
import or produce any ethanol, though a 100,000 liters/day plant is under
construction and slated to come online in 2007. 

A legislative bill mandating use of 5-10% ethanol in gasoline is also still
pending government approval. "We hope the lower tariff will lead to imports
and encourage oil companies to start blending ethanol with gasoline on a
voluntary basis, until a regulation is in place," the DOE official said. "Once
oil firms start using ethanol widely, it would provide enough incentive for
companies to set up domestic production facilities," she said. In the
meantime, the DOE has started a program to create awareness about
ethanol-blended gasoline among motorists, the official said.

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