PHL fuel ethanol imports seen rising 1% in 2026

The Philippines' fuel ethanol imports are projected to increase by 1% to 490 million liters in 2026, according to the US Department of Agriculture (USDA). In a report released on July 23, the USDA attributed the slow growth to weak vehicle sales, a consequence of the national energy emergency declared in March. Fuel ethanol consumption is estimated to grow by 2% to 875 million liters, with its growth also hampered by the same emergency. Despite sluggish vehicle sales, the automotive industry saw a 4% month-on-month increase in sales in May, a rebound from a 12% year-on-year decline in the first four months of the year. Meanwhile, fuel ethanol production is forecast to jump 2% to 385 million liters this year. This surge is linked to low bioethanol reference prices for locally produced bioethanol, driven by low average prices for molasses and a high overall supply of the sugar byproduct. However, potential conversion of sugarcane land to other uses could affect feedstock availability in the coming years. The bioethanol industry is actively exploring alternatives to address these constraints. "To address longer-term feedstock constraints, the industry is exploring alternative feedstocks such as corn, sweet sorghum, cassava, and nipa, though these remain in the research and development stage," the USDA stated. For biodiesels, consumption is projected to rise 1% to 350 million liters, while production is expected to increase by 6% to 370 million liters. The modest rise in consumption is partly attributed to the potential decline in the overall diesel fuel pool. As of April 2026, the Philippines has 13 accredited bioethanol producers with a combined annual capacity of 468 million liters per year (MLPY). This capacity is set to increase to 513 MLPY once an additional facility currently under construction, with a capacity of 48 MLPY, becomes fully operational. The USDA also noted that 15 accredited biodiesel producers are operating in the Philippines, with a combined installed capacity of 907 MLPY. Three additional facilities, with a combined capacity of 201 MLPY, have received accreditation for construction. However, one facility has been non-operational since 2025 due to an expired accreditation. Source: BusinessWorld Economy