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IN an effort to shield consumers from bearing the brunt of paying for expensive fuel with ethanol additive, Eastern Renewables and Fuels Corp. said it does not totally support petitions to impose a 20-percent tariff for ethanol.

Fernando Martinez, Eastern Petroleum chairman and chief executive, said he does not fully support the calls to increase the tariff for ethanol to 20 percent from 1 percent.

Eastern Renewables is the biofuels arm of Eastern Petroleum. “I’m not advocating for the 20-percent tariff since it penalizes consumers. As it is, there are already available incentives under the Biofuels Law to encourage investments.”

Martinez explained that a higher tariff for imported ethanol may result in an increase in the price of ethanol-blended gasoline.

The Eastern Petroleum official said the government should still continue supporting the growing ethanol industry by bringing down the barriers.

He further noted that the government should encourage farmers to grow ethanol feedstock such as cassava as it has a better yield than sugarcane.

Martinez said Eastern Renewables is putting up a $30-million ethanol plant in Isabela, and that it is preparing its cassava plantation to ensure the sustainability of supply.

“We’re in the final stages of our feasibility study for the ethanol project. And we’re narrowing down our choice of equipment supplier. We are currently evaluating the proposals submitted by our technology providers,” Martinez said.

Eastern Petroleum’s proposed ethanol plant has an annual capacity of 30 million liters or 100,000 liters per day.

Martinez said his company plans to start constructing the plant next year and is targeted to be completed in 2012. “We have asked some local banks to help us get some syndicated loans or strategic funds,” Martinez said.

The Ethanol Producers Association of the Philippines earlier said it will seek the Tariff Commission’s nod for its petition to increase the most favored nation tariff of ethanol to 20 percent from 1 percent.

Source: Businessmirror.com.ph