Imported Bioethanol Tariff to be raised to 20%
Much awaited good news for Philippine Bioethanol producers, that the government will issue an Executive Order effectively raising the tariff of imported bioethanol to 20% from the existing 10%. This will be done in order to protect local bioethanol producers in hopes of keeping the fledgling industry alive.
A couple years back the Philippines implemented the Biofuel Law which calls for mandatory mixing of biofuels into the fuels sold at the pump in hopes of reducing the need of fuel that had to be imported by growing its own local biofuel.
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While the local bioethanol industry was being established and trying to ramp up production, oil retailers would be allowed to import bioethanol in order to meet the demands of the biofuel law. However with only a 10% tariff imposed on the imported bioethanol, it was far more cheaper for the oil retailers to import instead of buying locally. This had been a point of contention for the local bioethanol producers with nobody buying the bioethanol they produce.
