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Mexico’s howler monkeys dropping dead as heat toll mounts

PAULO-B.-CHAVES—FLICKR

COMALCALCO — Threatened howler monkeys have been dropping dead from trees in Mexico’s southeastern tropical forests in recent weeks amid a nationwide drought and heat waves that have sent temperatures soaring across much of the country.

In the state of Tabasco, where temperatures are forecast this week to surpass 45°C (113°F), local media have reported up to 85 deaths, while local authorities have confirmed the trend without providing a death toll.

In a statement over the weekend, Tabasco’s Civil Protection agency attributed the deaths to dehydration.

A source from the agency told Reuters on Monday that monkeys have been confirmed dead in three municipalities of the state.

In a forest outside Camalcalco, Tabasco, volunteers collected the corpses of mantled howler monkeys (alouatta palliata) that died from high temperatures, before placing buckets of water and fruit to try to stave off more deaths.

The mantled howler monkey is classified as vulnerable on the International Union for Conservation of Nature (IUCN) Red List.

“It is because the heat is so strong. I’ve been visiting the states for a long time and I have never felt it as much as now,” Mexican President Andres Manuel Lopez Obrador, who hails from Tabasco, said on Monday when asked about the monkey deaths.

“So, yes, we have to care for the animals and yes we are going to do it,” he said in his regular news conference.

Later on Monday, Mexico’s environment ministry said in a statement that it was coordinating efforts to address the monkeys’ deaths, which it attributed to several possible reasons, including “heat stroke, dehydration, malnutrition or the spraying of crops with toxic agro-chemicals.”

Mexico is also home to the Yucatan howler monkey, which because of deforestation is classified as endangered on the IUCN Red List.

Mexico’s health ministry reported a preliminary count of 26 people who have died from heat-related causes between the start of Mexico’s heat season on March 17 and May 11. — Reuters

DOTr apprehends colorum vehicles, 2M in fines collected

PHILIPPINE STAR/WALTER BOLLOZOS

More than Php 2 million in fines were collected yesterday, May 20, by the Special Action and Intelligence Committee for Transportation (DOTr-SAICT) imposed on illegal and unregistered vehicles.

According to Transport Secretary Jaime J. Bautista, the Department of Transportation (DOTr), LTO, and LTFRB are working with the Philippine National Police (PNP) and Metro Manila Development Authority (MMDA) towards apprehending colorum PUVs. 

“Ang LTO, LTFRB and in coordination with PNP and MMDA—ready kami manghuli ng colorum, (The LTO, LTFRB, in coordination with PNP and MMDA are ready to apprehend colorum vehicles,”) Mr. Bautista stated. 

Indicated in the Anti-Colorum program spearheaded by DOTr-SAICT, illegal van operators could face a P200,000 fine, while a P1 million penalty for illicit buses. 

By imposing such policies, the government is “showcasing steadfast dedication to ensuring road safety for all,” the department added. 

Aside from vans and buses, after the 15-day grace period given last April 30, traditional public utility jeepneys (PUJs) that failed to consolidate with the modernization program (PUVMP) were barred from plying their routes. 

Since the deadline, over 10,000 unauthorized jeepney units nationwide, including 1,900 units in Metro Manila, were deemed illegal due to expired franchises. Apprehended jeepneys would result in a P50,000 fine for the operator, one-year suspension for the driver, and vehicle impound for 30 days at Pampanga, LTFRB Chairman Teofilo Guadiz III mentioned. 

“We can now flag down and we can apprehend drivers or vehicles because the grace period we had given them had already lapsed so that those that were unconsolidated can no longer travel,” Mr. Guadiz said. 

As of May 16, around 81%, or approximately 160,000 units, have consolidated with the government’s modernization program. – Almira Louise S. Martinez

Microinsurance Network Chair urges more action to close the protection gap

Microinsurance Network Chairman and Pioneer Group Head Lorenzo Chan, Jr.

Microinsurance Network Chairman (MiN) and Pioneer Group Head Lorenzo Chan, Jr. shares breakthroughs in inclusive insurance but stresses that much is still to be done to better serve the low-income sector who need it most.   

In a recent article published by the European Financial Review, an online business intelligence platform, Mr. Chan highlights the MiN’s 2023 “Landscape of Microinsurance Study” findings. According to the study, 330 million people in 36 surveyed countries, equivalent to 11.5% of the target population, now have microinsurance coverage. This is a significant increase from the 7% reported in 2019. However, this also reveals that nearly 90% of the target market still lacks insurance protection, emphasizing the need for sustained efforts in this area.

The low-income sector has few resources and cannot afford to wait long to receive their insurance benefits. Many live hand to mouth and, hence, need to claim quickly so they can rebuild as soon as possible. “Speedy claims settlement and turnaround time should be part of the equation if one is to win more converts and believers,” Mr. Chan shared.

Mr. Chan also highlighted the driving forces behind microinsurance: the billions of individuals comprising the market, the significant risk exposure necessitating protection, and the abundance of insurers. However, the challenge lies in finding people willing to explore the micro market’s unique needs and what it can afford, going beyond conventional business models.

 “The time is ripe. Regulators must continue enabling the industry to do more, whether by creating awareness, innovating products, and approaches, digitalizing and simplifying processes for ease of doing business or creating value propositions that benefit the client,” Mr. Chan added.

Microinsurance Network (MiN) is a global nonprofit multi-stakeholder platform that promotes inclusive insurance to low-income households worldwide. Since 2021, Mr. Chan has been the first and only Asian to serve as MiN Chairperson.  

The “2023 Landscape of Microinsurance Study” by the Microinsurance Network gathered data from 294 insurance providers across 36 countries. It provides a unique benchmark tracking uptake of microinsurance products and services with insights into emerging trends.

 

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Scarlett Johansson says OpenAI chatbot voice ‘eerily similar’ to hers

By Gage Skidmore, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=102159721

Scarlett Johansson on Monday accused OpenAI of creating a voice for the ChatGPT system that sounded “eerily similar” to the actress after she declined to voice the chatbot herself.

Ms. Johansson made the comments in a statement released hours after the artificial intelligence company said it was taking down the voice, called ‘Sky.’

OpenAI CEO Sam Altman said in a statement emailed to Reuters on Monday that Sky’s voice was not an imitation of Johansson, but belonged to a different professional actress.

“The voice of Sky is not Scarlett Johansson’s, and it was never intended to resemble hers. We cast the voice actor behind Sky’s voice before any outreach to Ms. Johansson,” Mr. Altman said.

“Out of respect for Ms. Johansson, we have paused using Sky’s voice in our products. We are sorry to Ms. Johansson that we didn’t communicate better.”

The fight over rights to actors’ voices and images has become a focus in Hollywood as studios consider how to use AI to create new entertainment and as the computer-produced images and sounds become difficult to distinguish from those of humans.

Ms. Johansson in the statement said Altman had approached her last September and offered to hire her to voice a ChatGPT voice — an offer she declined.

“Nine months later, my friends, family and the general public all noted how much the newest system named ‘Sky’ sounded like me,” she said.

“When I heard the released demo, I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference.”

Ms. Johansson added that Mr. Altman had “insinuated that the similarity was intentional” by tweeting a reference to “her,” the 2013 movie about a man who develops a relationship with an AI assistant voiced by the actress.

Ms. Johansson’s note was published by journalists from NPR and other news outlets. Her publicist also shared it with Reuters.

She said that she had hired legal counsel to ask about the process of creating the voice.

OpenAI showed off its newest AI model, called GPT-4o, last week, with audio capabilities that let users speak to the chatbot and obtain real-time responses, marking a significant advancement in more realistic sounding AI conversations. – Reuters

Ford backs new US rules to cut vehicle emissions

WASHINGTON – Ford Motor Co. said on Monday it backs the Biden administration’s moves to dramatically cut vehicle emissions through 2032, rejecting Republican arguments the new climate rules are bad for business.

The second largest US automaker said it supports the Environmental Protection Agency’s regulations announced in March to cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 over 2027 levels.

“Complying with emissions regulations requires lengthy advance planning, and Ford has taken steps to transform its business to ensure compliance with stricter emissions standards,” the Dearborn-based automaker said.

It said it welcomed the regulatory stability that the Multi-Pollutant Rule will provide, preventing the “possibility of flip-flopping or changing standards.”

Former President Donald Trump, who is seeking a return to the White House, has vowed to reverse the Biden rules that would boost electric vehicles.

Earlier, a trade group representing General Motors, Toyota Motor, Volkswagen VOWG, Ford and nearly all other major automakers on Monday said it supported two key aspects of the rule.

The Alliance for Automotive Innovation filed in support of the EPA in including electric vehicles in fleetwide averaging of emissions and excluding upstream emissions from compliance calculations, but did not weigh in on the entire rule or the legality of the standards.

Last month, 25 Republican-led states sued the EPA arguing the new regulations saying they are unlawful and unworkable.

The auto alliance, which also includes Stellantis, Honda Motor and Hyundai Motor, said the two key provisions it is backing “are essential if vehicle manufacturers are to have any possibility of demonstrating compliance with the GHG reduction targets.”

Republican state officials argue the administration wants to transform the American passenger vehicle market through strict rules and force automakers to shift production to EVs.

A group of 22 states led by California back the EPA’s tailpipe emissions, saying they could be harmed if the EPA did not require future reductions in harmful vehicle emissions.

The regulations are among the most significant environmental rules implemented under President Joe Biden, who has made tackling climate change a pillar of his presidency. The EPA has forecast that between 35% and 56% of new vehicles sold between 2030 and 2032 would be electric.

The EPA said the final rules announced in March will cut emissions by 49% by 2032 over 2026 levels compared with 56% under its previous plan. EPA chief Michael Regan said the rule imposed no mandate on manufacturers to adopt electric vehicles. – Reuters

Brazil central bank plans year-end proposal for crypto regulation

PIXABAY

BRASILIA – Brazil’s central bank announced on Monday that it has decided to divide the process of regulating crypto-assets and virtual asset service providers into phases, with regulatory proposals expected by the end of this year.

The decision effectively delays the completion of the process following a 2022 law on the subject, which paved the way for subsequent regulation by the central bank.

In a congressional hearing last year, the bank’s director of regulation, Otavio Damaso, had projected regulation to be wrapped up by June 2024.

After launching a public consultation on the matter in December 2023, which concluded in January, the central bank said it would now open a new consultation in the second half of this year.

The central bank told Reuters that the first public consultation aimed to gather input from society, also addressing issues not covered by the 2022 law, such as the asset segregation of virtual asset service providers.

This required “reasonable dedication from the teams involved in the regulatory work,” it said, adding that the diversity of activities conducted by entities in the virtual assets sector and the various structures of these entities necessitated this preliminary effort.

“The second public consultation, now focused on regulatory texts, aims to use the initial input to, once again with broad support from society, establish a robust regulatory framework,” said the central bank. – Reuters

Microsoft debuts ‘Copilot+’ PCs with AI features

REUTERS

SEATTLE – Microsoft on Monday debuted a new category of personal computers with AI features as it rushes to build the emerging technology into products across its business and compete with Alphabet and Apple.

At an event on its campus in Redmond, Washington, Chief Executive Satya Nadella introduced what Microsoft calls “Copilot+” PCs, saying that it and a range of manufacturers would sell them, including Acer and Asustek Computer.

Microsoft launched the laptops as its shares trade near record highs following a Wall Street rally driven by expectations that AI will fuel strong profit growth for the company and its Big Tech rivals.

Able to handle more artificial-intelligence tasks without calling on cloud data centers, the new computers will start at $1,000 and begin shipping on June 18.

The ability to crunch AI data directly on the computer lets Copilot+ include a feature called “Recall.” “Recall” tracks everything done on the computer, from Web browsing to voice chats, creating a history stored on the computer that the user can search when they need to remember something they did, even months later.

The company also demonstrated its Copilot voice assistant acting as a real-time virtual coach to a user playing the “Minecraft” video game.

Yusuf Mehdi, who heads up consumer marketing for Microsoft, said the company expects that 50 million AI PCs will be purchased over the next year. At the press event, he said faster AI assistants that run directly on a PC will be “the most compelling reason to upgrade your PC in a long time.”

Global PC shipments dipped about 15% to 242 million last year, according to research firm Gartner, which suggests Microsoft expects the new category of computers to account for around one-fifth of all PCs sold.

“People just need to be convinced that the device experience alone justifies this entirely new category of Copilot+ machines,” said analyst Ben Bajarin of Creative Strategies.

Microsoft’s new “Copilot+” computer marketing category that highlights AI features is reminiscent of the “Ultrabook” category of thin-form Windows laptops that Intel promoted with PC manufacturers in 2011 to compete against Apple’s MacBook Air.

Microsoft executives also said that GPT-4o, the latest technology from ChatGPT maker OpenAI, will “soon” be available as part of Copilot.

Microsoft also introduced a new generation of its own Surface Pro tablet and Surface Laptop that feature Qualcomm chips based on Arm Holdings’ architecture. It also introduced a technology called Prism that will help software written for Intel and AMD chips run on chips made with Arm technology.

Microsoft showed its new devices in action against an Apple device, showing photo editing software from Adobe running faster on the Microsoft device. Apple earlier this month showed a new AI-focused chip that analysts expect to be used in future laptops.

After Intel’s processors dominated the PC market for decades, Qualcomm and other makers of lower-power Arm components have tried to compete in the Windows-PC market.

The Qualcomm Snapdragon X Elite chips include a so-called neural processing unit designed to accelerate AI-focused applications, such as Microsoft’s Copilot software.

Microsoft held the product event a day before its annual developer conference.

Microsoft aims to extend its early advantage in the race to produce AI tools that consumers are willing to pay for. Its partnership with OpenAI allowed it to jump ahead of Alphabet as they race to dominate the field.

Last week, OpenAI and Alphabet’s Google showcased dueling AI technologies that can respond via voice in real time and be interrupted, both hallmarks of realistic voice conversations that AI voice assistants have found challenging. Google also announced it was rolling out several generative AI features to its lucrative search engine.

Windows PC makers have been under increasing pressure from Apple since the company launched its custom chips based on designs from Arm and ditched Intel’s processors. The Apple-designed processors have given Mac computers superior battery life and speedier performance than rivals’ chips.

Microsoft tapped Qualcomm to lead the effort to move the Windows operating system to Arm’s chip designs in 2016. Qualcomm has exclusivity on Microsoft Windows devices that expires this year. Other chip designers such as Nvidia have efforts under way to make their own Arm-based PC chips, Reuters has previously reported. – Reuters

GSK whistleblower claims drugmaker cheated US government over Zantac cancer risk

FREEPIK

GSK has been sued by an independent Connecticut laboratory that accused the drugmaker of defrauding the US government and taxpayers by concealing cancer risks in Zantac, once a blockbuster heartburn drug.

In a whistleblower complaint filed on Monday, Valisure said GSK violated the federal False Claims Act by hiding the risks for nearly four decades while Medicare, Medicaid and other health programs covered billions of dollars of prescriptions.

The New Haven-based lab said its testing in 2019 revealed that Zantac, also known as ranitidine, could form a cancer-causing carcinogen known as NMDA and was therefore “unfit for human consumption.”

It said GSK concealed the same result from the U.S. Food and Drug Administration, which approved Zantac in 1983.

Valisure is seeking billions of dollars in damages from GSK, including civil fines of up to $11,000 per violation, in a complaint filed in Philadelphia, where some of the British drugmaker’s operations are based.

Its lawyers also represent thousands of plaintiffs in personal injury lawsuits against GSK and other companies that have sold ranitidine.

In a statement, GSK said it will defend against Valisure’s meritless lawsuit, and that the FDA has found the lab’s tests “scientifically flawed and unreliable.”

GSK also said there remains no consistent or reliable evidence that ranitidine increases cancer risks.

The False Claims Act lets whistleblowers sue on behalf of the federal government, and share in recoveries.

Valisure first sued GSK on behalf of the United States and more than two dozen states in 2019, in a case filed under seal.

The federal government declined to join the lawsuit in March, leaving Valisure to sue on its own.

Zantac became the world’s best selling medicine in 1988, and was one of the first drugs to top $1 billion in annual sales.

The FDA asked drugmakers in April 2020 to pull Zantac and generic equivalents off store shelves after finding NDMA in samples, citing what Valisure said was its testing.

Two years later, a federal judge dismissed about 50,000 Zantac claims after rejecting the plaintiffs’ scientific experts. Some of those cases are being appealed.

More than 70,000 private lawsuits over Zantac remained pending this month in U.S. courts. Most are in a Delaware state court, where a judge is weighing whether the cases can proceed.

The first trial over Zantac’s link to cancer began this month in Chicago, and may end this week.

The case is US ex rel Valisure LLC v GlaxoSmithKline Plc et al, US District Court, Eastern District of Pennsylvania, No. 19-04239. – Reuters

ICC’s Khan puts his office back on collision course with Washington

ICC-CPI.INT

THE HAGUE – The British lawyer and prosecutor who helped end a US policy against the International Criminal Court on Monday requested an arrest warrant for Israeli Prime Minister Benjamin Netanyahu, putting his office back on a collision course with Washington.

Karim Khan, who became chief prosecutor of the world’s first permanent war crimes court in 2021, asked pre-trial judges to order the arrest of Netanyahu, Israeli Defense Minister Yoav Gallant and three top Hamas leaders.

Just months after being appointed to a nine-year term in The Hague, Mr. Khan shifted the ICC’s investigation in Afghanistan away from US forces to focus on the alleged crimes of the Taliban and local ISIS militants. The move drew criticism from human rights organizations and was seen by some as an attempt to win over Washington.

Opposition to the ICC came to a head during the administration of former President Donald Trump, when the United States sanctioned members of the court and blocked the bank accounts of Khan’s predecessor.

In a sign of improved relations, the sanctions were dropped under President Joe Biden.

In June last year, the US attorney general made the first ever visit to the ICC in the court’s 22-year history. Merrick Garland met Khan and supported his investigation in the Russian-Ukraine war and the court’s arrest warrant for Russian President Vladimir Putin.

But the improved relationship with the US was set to take a turn for the worse on Monday after Mr. Khan went on CNN to announce his next legal step in the Israel-Gaza conflict.

US President Joe Biden quickly slammed Mr. Khan’s move to seek warrants for senior Israeli officials as “outrageous”.

His top diplomat, Secretary of State Antony Blinken, called out Mr. Khan saying the prosecutor had been scheduled to visit Israel as early as next week to speak about cooperation with the court. Instead, the prosecutor went on a cable television to announce the charges, Mr. Blinken said.

“These and other circumstances call into question the legitimacy and credibility of this investigation,” Mr. Blinken said.

Republican US House Speaker Mike Johnson called Mr. Khan’s decision to seek warrants “baseless and illegitimate”.

 

DEFENDER OF WOMEN AND CHILDREN

Mr. Khan, a 54-year-old barrister, made his name as an international defense attorney. He was seen as an ICC outsider who was appointed to the top job in a vote by the court’s member states after intense political jostling.

Mr. Khan and his office have been under intense scrutiny for his investigation of the Israel-Hamas conflict, with political pressure promoting a rare public statement earlier this month.

Mr. Khan said all attempts to impede, intimidate or improperly influence ICC officials must cease immediately.

Mr. Khan has traveled frequently to countries where the ICC is investigating. He became the first ICC prosecutor to visit an active war zone when he visited Ukraine in March of 2021.

In December, Mr. Khan also made a high profile visit to Israel and the occupied Palestinian territories on the West Bank, also the first ever trip of its kind by an ICC prosecutor.

A graduate of King’s College in London, Mr. Khan has stressed his dedication to going after perpetrators of sexual crimes and defending the rights of children.

He identified himself as a member of the minority Ahmadiyya Muslim Community from Pakistan and has quoted the Quran, the Muslim holy book, in several ICC statements.

In a legal career of more than three decades, Khan has worked for almost every international criminal tribunal in roles in prosecution, defense and as counsel for victims.

Mr. Khan started his international law career as a legal advisor for the office of the prosecutor for the United Nations ad hoc war crimes tribunal for both the former Yugoslavia and Rwanda between 1997 and 2001.

His first turn in the limelight was as the lead defense attorney for former Liberian president Charles Taylor who was on trial for war crimes before the Special Court for Sierra Leone, seated in The Hague for the Taylor trial.

On the opening day of the trial in 2007 Khan dramatically walked out of the courtroom against judges’ orders after announcing Charles Taylor had fired him.

Mr. Khan subsequently worked on ICC cases on Kenya, Sudan and Libya before being appointed in 2018 as the head of Unitad, UNITAD, the U.N. team investigating Islamic State crimes in Iraq. – Reuters

Keppel Philippines Holdings to hold annual stockholders’ meeting remotely on June 14

 

 

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Senate OKs VAT on digital services

PACKAGES are seen from e-commerce giant Shein. — IMAGO/ONE MORE PICTURE VIA REUTERS CONNECT

THE PHILIPPINE Senate on Monday approved on third and final reading a bill that seeks to impose a 12% value-added tax (VAT) on digital services provided by companies with no physical presence in the Philippines.

All 23 senators voted in favor of Senate Bill No. 2528, which requires nonresident digital service providers to collect and remit VAT on all digital transactions of customers in the Philippines.

Under the measure, nonresident digital service providers and electronic marketplaces must register with the Bureau of Internal Revenue (BIR) for the remittance of VAT on their services.

Digital services refer to those provided over the internet or other electronic networks using information technology. These include online search engines, online marketplaces, cloud services, online media and advertising, online platforms and digital goods.

If signed into law, the measure may cover e-commerce firms such as Amazon, Shein, Rakuten, Taobao, AliExpress and Temu, which do not have physical presence in the Philippines.

The BIR commissioner can order the blocking or suspension of the services of digital providers if they fail to withhold and remit the 12% VAT.   

The bill exempts online courses, seminars and training programs offered by private educational institutions accredited by the Department of Education and Commission on Higher Education from remitting the tax.

The services of banks and nonbank financial intermediaries including those delivering services through digital platforms are also exempt from remitting the VAT, according to a copy of the bill sponsored by Senator Sherwin T. Gatchalian.

The measure also has a reverse charge mechanism that will require a VAT-registered taxpayer who receives the digital services from these nonresident foreign businesses and marketplaces to withhold and remit the VAT to the BIR.

“This (measure) would level the playing field with local market players in terms of taxation and on top of principles in terms of taxation, this would also increase the government’s source of recurring revenues,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Department of Finance expects the bill to bring in P83.8 billion in revenue from 2024 to 2028.

The House of Representatives approved a similar measure in November 2022.

“This will increase tax revenues but may be detrimental to businesses as this is an additional burden that they may pass to consumers, making products more expensive,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said in a Viber message.

Meanwhile, the Senate also approved on third and final reading a bill seeking to set tougher penalties on those who use financial accounts to commit crimes.

All 23 senators voted in favor of Senate Bill No. 2560, or the proposed Anti-Financial Account Scamming Act (AFASA), which sets jail time of at least six years and a fine of as much as P500,000 against those behind money mule schemes.

People found guilty of fraud may face as long as 12 years in jail and a fine of at least P1 million, according to a copy of the measure sponsored by Senator Mark A. Villar.

The bill also punishes those committing economic sabotage — deliberately disrupting a country’s economy, with life imprisonment and a fine of at least P1 million but not more than P5 million.

Both measures approved on Monday are part of the Legislative-Executive Development Advisory Council’s priority bills. — John Victor D. Ordoñez

Oil firms told to hike biodiesel blend by October

An attendant fills up a vehicle at a gasoline station in Manila, Sept. 18, 2023. — PHILIPPINE STAR/EDD GUMBAN

By Sheldeen Joy Talavera, Reporter

THE DEPARTMENT of Energy (DoE) directed oil companies to increase the coco biodiesel blend starting October, in a bid to help reduce pump prices and support the local industry.

In a circular, the DoE said all diesel fuel sold in the country should contain a biodiesel blend of 3% starting Oct. 1, from 2% now.

Oil firms should increase the coco biodiesel blend to 4% by Oct. 1, 2025, and to 5% by Oct. 1, 2026.

The Biofuels Act of 2006 mandates that all liquid fuels for motors and engines contain locally sourced biofuel components.

Since February 2009, oil companies have been required to implement a 2% biodiesel blend by volume in all diesel fuel sold and distributed in the country.

“Following the drastic increase in the cost of fuel over the past years as a consequence of the Ukraine-Russia conflict, production cuts by the Organization of the Petroleum Exporting Countries (OPEC) Plus and global inflation, the National Biofuels Board (NBB) has determined that an increase in the bioethanol blend will reduce pump price of diesel and gasoline fuel and help alleviate the burden of rising prices on consumers,” according to the circular.

The increase in the coco methyl ester (CME) blend from 2% to 5% was supposed to have been implemented in 2020 but was delayed due to the coronavirus pandemic. At that time, there was a lack of assurance on the sufficiency of biodiesel supply, as well as logistical limitations.

Under the circular, the DoE said oil companies can also offer gasoline fuel containing 20% bioethanol blend on a voluntary basis. At present, the DoE has mandated a 10% bioethanol blend by volume into all gasoline fuel sold locally.

In a statement, the DoE said increasing the bioethanol blend to 20% could result in a P3.21 per liter reduction in gasoline pump prices.

“Implementing the higher biofuel blend is a win-win solution as we promote economic growth, uphold environmental stewardship and strive for cleaner energy utilization. It is also about investing in a future where sustainability drives progress,” Energy Secretary Raphael P.M. Lotilla said.

The DoE said in the circular that the downstream oil industry should implement measures to ensure that all requirements for the transition to the higher biofuel blend are in place before the deadline.

Oil firms should ensure there is sufficient storage capacity, blending facilities and transport systems to accommodate an expected increase in biofuel supply.

Fuel retailers that implement the 20% bioethanol blend are also directed to provide a dedicated storage tank and dispensing pump. Vehicle owners should be informed before dispensing gasoline.

Meanwhile, biofuel producers should ensure there is ample feedstock and production to meet the demand for higher biofuel blend.

“The proposed increase in the ethanol blend in gasoline and the CME blend in diesel is part of the country’s efforts to reduce reliance on imported fossil fuels, lower greenhouse gas emissions, and support the local bioethanol and biodiesel industries,” Rodela I. Romero, assistant director of the DoE Oil Industry Management Bureau, said in a Viber message.

She said the new policy is part of government efforts to comply with environmental regulations, promote the use of “cleaner fuels” and support local industries.

However, Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the new policy “should have included a suspension mechanism in the event of unreasonable surges in global biodiesel and bioethanol prices.”

He said allowing a price surge would defeat the government’s objective to mandate biofuels to ensure lower pump prices.

“[The] government should focus on using local biofuel supply instead of relying heavily on importation for our blending requirements,” he said in a Viber message.

Dean A. Lao, Jr., president of Chemrez Technologies, Inc., said the higher biodiesel blend is “long-time coming and much needed” by the agriculture industry.

“There is so much local value adding to coconut oil and even more CO2 (carbon dioxide) displacement for the country. I am glad the biodiesel industry can be credited with such inclusive benefits for the Philippines,” he said.

Chemrez, a subsidiary of publicly listed D&L Industries, Inc., operates the country’s first continuous-process biodiesel plant, according to its website.

The United States Department of Agriculture (USDA) expects biofuel consumption to recover in 2024 as fuel ethanol demand is seen to grow by 8% to 682 million liters, while biodiesel demand is expected to inch up by 0.8% to 240 million liters.

“The primary driver of this growth will be increases in the fuel pool, with potential for greater growth if higher blending standards are fully adopted,” the USDA said in its report.

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