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DoE eyes aggressive targets to reduce oil import dependence

THE DEPARTMENT of Energy (DoE) is seeking to set more “aggressive” targets in a bid to reduce dependence on imported fuel, including increasing the adoption of electric vehicles (EV) and biofuel blends, its top official said.
Energy Secretary Sharon S. Garin said the department is currently developing a fuel transition plan focusing on the transport sector given its heavy reliance on petroleum products.
“With one sector having one dominant fuel source, this concentration is exactly where the country’s vulnerability lies,” Ms. Garin said during the Management Association of the Philippines’ general membership meeting on Wednesday.
The DoE is considering targeting EVs to account for 60% of the country’s vehicle fleet by 2040 and 80% by 2050 under an aggressive adoption scenario, exceeding the Philippine Energy Plan (PEP) 2023-2050’s target of 50% EV penetration by 2040.
The DoE is also looking at raising the target biodiesel blend to 50% (B50), far above the PEP target of 5% (B5).
Republic Act No. 9367 or the Biofuels Act of 2006 mandates that all liquid fuels for motors and engines contain a fixed percentage of biofuel such as bioethanol and biodiesel in a bid to promote cleaner energy, cut dependence on imported oil, and support agricultural industries.
Ms. Garin said the government is also aiming to fast-track the adoption of sustainable aviation fuels and explore the use of hydrogen technologies for heavy-duty transport.
The transport sector accounts for 67% of the country’s total oil demand, based on DoE data.
Oil demand increased sharply from 140,000 barrels in 2015 to 180,000 barrels last year, with diesel continuously accounting for the largest share.
For non-transport sectors, the DoE plans to push fuel switching, improving energy efficiency initiatives, and adoption of cleaner technologies across households, industry, services, agriculture, and off-grid power generation.
“The diversification of our energy sources is one of the actions that will sustain and ensure energy security. We are keen on developing our indigenous oil, gas and coal resources,” Ms. Garin said.
The US-Israel war with Iran has exposed the Philippines’ energy vulnerabilities, as around 90% of its crude oil imports are sourced from the Middle East.
“The DoE has been swift in its actions, employing a whole-of-government approach in securing fuel supply, monitoring and cushioning the impact of prices to consumers, preventing hoarding and profiteering, enforcing energy efficiency and conservation measures, and setting up support measures for the transport and agriculture sectors,” Ms. Garin said. — Sheldeen Joy Talavera

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