Year:2007 (January)
Policy status:In Force
Date Effective:2007 (January)
Policy Type:Regulatory Instruments>Obligation schemes , Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Loans, Regulatory Instruments>Other mandatory requirements
Policy Target:Bioenergy>Biofuels for transport
Policy Sector:Framework Policy, Transport
Agency:Department of Energy
Legal References:Republic Act No 9367

The Biofuels Act adopted in late 2006 went into force in January 2007, mandating various minimum percentages of locally-sourced biofuels (meeting certain standards) to be blended into liquid fuels for motors and engines.

It requires a minimum 1% biodiesel blend by volume in all diesel fuels within 3 months of the Act’s enforcement, and 5% bioethanol blend by volume within two years in all gasoline fuels being distributed and sold in the Philippines. This volumes are to progressively increase; for biodiesel to 2% within 2 years, and for bioethanol to 10% within four years.

The regulation is accompanied by an incentive scheme comprising various fiscal incentives. The biofuels component (local or imported) in fuel is exempt from specific tax, and raw materials used for the production of biofuels are exempt from value added tax (VAT). Water effluents resulting from biofuel production are exempt from payment of wastewater charges.

In addition, financing for the production, storage, handling and transport of biofuel or biofuel feedstock, including blending of biofuels with petroleum, is to be prioritised by government financial institutions. Recipients must be Filipino citizens, or entities of which at least 60% of the capital stock is owned by Filipino citizens.


In order to download full version of the Biofuels Act 2007 please, PAMS_Philippines_Biofuels Act 2007

Related policies:Utilization of Locally Produced Bioethanol in the Production of E-Gasoline Consistent With the Biofuels Act Of 2006 , Mandatory use of biofuel blend

Last modified: Tue, 20 May 2014 15:18:46 CEST