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PIA Press Release
2007/05/07

DOE expects smooth transition to biofuels beginning May 6

Quezon City (7 May) -- WITH the enforcement of the one-percent coco methyl ester diesel blend beginning Sunday, May 6, the Department of Energy (DOE) said it expects to have a smooth transition of the Biofuels Act of 2006.

The Biofuels Act of 2006 mandates a minimum one-percent blend of biodiesel into all diesel engine fuels within three months from the effectivity of the Act. President Arroyo signed the Biofuels Act last January 12, 2007 which became effective February 2007.

“We anticipate a very smooth implementation of the Biofuels Act starting May 6. The stakeholders, including the oil companies, have been very supportive of the law, so we see no hitches in the implementation beginning this Sunday,” Energy Secretary Raphael P.M. Lotilla said.

The Biofuels Act is a landmark legislation that is expected to liberate the country’s transport sector from full dependence on imported fuel following the mandate of certain percentage of locally sourced biofuel blends in gasoline and diesel sold and distributed in the country.

Lotilla said the Biofuels Act will also speed up the government’s efforts toward attaining energy self-sufficiency given that the needed investment and regulatory environment for the development of local biofuels industry is already in place.

The Biofuels Act also mandates that at least 5-percent bioethanol shall comprise the annual total volume of gasoline fuel sold in the country within two years from the effectivity of the Act. This may be increased to 10 percent within four years from the effectivity of the Act, as may be determined by the National Biofuels Board (NBB).

The one-percent biodiesel blend may also be increased to 2 percent within two years from the effectivity of the Act as may be determined by the NBB.

“Oil companies are committed to implement the mandated blend under the law, and we expect that there will be a smooth implementation beginning Sunday for the implementation of the one-percent biodesel blend. In fact, oil companies have assured me that diesel prices will not increase on May 6 due to the implementation of the Biofuels Law,” Lotilla said. (PIA) [top]

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