30-50¢ hike in diesel prices seen

The implementation of the Biofuels Law next month may result in 30 centavos to 50 centavos per liter increase in fuel.

This was the estimate released by Total Philippines Corp. president and managing director Anna Whitehouse.

"The impact of the implementation of Biofuels Bill will be 30-50 centavos. We are still negotiating with the suppliers. This estimated impact on diesel pump prices may change depending on the results of the negotiations," Whitehouse said.

Whitehouse said that while they are ready to follow the law, they will not absorb the impact of the Biofuels Law on fuel prices.

30-50¢ hike... From B-1

"As for our part, we are already subsidizing the fund to comply with the law. We can’t subsidize the impact on consumers," she said.

She said they are talking with at least three suppliers. "We will be in complying with the law before the May 6 schedule," Whitehouse said.

The projected impact to be passed on to consumers immediately on May 6 is contrary to earlier pronouncement of the government that the implementation of the Biofuels Bill will not affect the prices of diesel and gasoline.

Energy Secretary Raphael Lotilla, for his part, said the impact would depend on the price of CME and diesel at the time of the implementation.

"We still have a few more days to see if there would be an impact," Lotilla said.

At present, Shell sells its pre-blended bioethanol or E-10, 50 centavos below gasoline products’ prices.

The Biofuels Law was passed into law last January 2007.

The law mandates a one percent blend of CME to diesel products and five five percent blend of ethanol on gasoline in two years time.

Oil companies, including Total, have been setting aside funds to be able to comply with the Biofuels Act.

As this developed, Total will be introducing Auto LPG on tricycle.

The conversion unit will amount P10,000 to P12,000.

Total is in a trial run right now and is expected to be go on full blast before the end of the year.