Energy Secretary Vincent S. Perez said the government would save P10.4 billion with the use of ethanol as alternative fuel or as blending product for gasoline.

The Department of Energy is seriously promoting ethanol as alternative fuel. "If we will use ten percent ethanol as a blend to gasoline we would realize savings of P10.4 billion within the next three years," Perez told reporters during a press conference. Filipinos consume four billion liters of gasoline every year.

Perez said the government of Thailand is willing to help the country promote the use of ethanol, which is a sugar by-product. Thailand, like the Philippines is a sugar producer.

The local sugar industry, for example, can produce and supply five percent for the ethanol requirement. "The sugar producers are willing to expand this percentage up to 10 percent in the next two to three years," Said Perez.

At the moment, there are ongoing initiatives between the Philippines and Thailand for the manufacture of automobiles that have ethanol-usable engines.

As part of the DoE thrust to develop alternative transport fuels or biofuels, it is developing ethanol as gasoline blend in cooperation with Thailand. In fact the sugar industry has recently launched the Philippine Fuel Ethanol Alliance. Petron Corp., the country's biggest oil producer, will introduce pre-blended ethanol in the local market soon.

In his speech during the Mid-Year Economic Briefing yesterday, Perez said achieving energy independence is critical in ensuring economic growth.

"Our plan includes increasing reserves of indigenous oil and gas, aggressively developing renewable energy potential such as biomass, solar, wind and ocean resources, increasing the use of alternative fuels, forming strategic alliances with other countries and enhancing the country's energy efficiency and conservation programs," Perez said.