Manila rushes energy efficiency measures amid soaring prices

Singapore (Platts)--10Aug2005

Philippine president Gloria Macapagal Arroyo has urged the Department of
Energy to fast-track implementation of voluntary and mandatory measures to
improve energy efficiency and conservation amid skyrocketing oil prices. The
Philippines relies on imports to meet most of its crude oil demand of around
320,000 b/d. It spent a total $2.3-bil on oil imports in the first five months
of the year, up 27% from January-May 2004, despite an 8.6% drop in demand. Oil
demand in January-May 2005 stood at 46.29-mil bbl compared with 50.63-mil bbl
last year, a DOE official noted. "Rising oil prices drain the country's
foreign exchange reserves," energy secretary Raphael Lotilla said in a
statement, adding that the DOE would push its alternative fuel strategy in the
transport sector. The transport sector accounts for 58% of the Philippines'
total oil consumption. Coco-diesel, or coconut methyl ester, is the only
alternative fuel consumed in the archipelago currently.

The DOE is pursuing efforts to develop and promote utilization of other
indigenous alternative fuels such as ethanol and natural gas and even autogas
or LPG for the transport sector. "For coco-biodiesel, estimates show that
projected savings could amount to Peso 14-bil annually as a result of 10%
increase in fuel mileage using 1% coco-biodiesel blend based on the country's
2004 diesel demand of 5.4-bil liters," the DOE said in a statement. The
country recently slashed import tariffs on ethanol from 10% to 1% to encourage
demand for the gasoline blendstock and lower oil imports.

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