The Philippine domestic bioethanol reference price climbed 2.11% on a monthly basis or 25.47% on a year on year basis to Pesos 55.07/liter ($1,101.40/cu m) in December, data released Tuesday by the Sugar Regulatory Administration showed.
The increase came after three months of consecutive monthly drop in domestic ethanol price in the Philippines. The domestic bioethanol price had increased since the start of 2018 before falling in September.
Rising cost of feedstocks contributed to the rapid climb in domestic ethanol prices.
In comparison, the average imported fuel ethanol price for December was $428.41/cu m CIF Philippines, S&P Global Platts data showed, which was less than half of locally produced ethanol prices.
For Negros molasses, one of the feedstocks, prices rose 0.71% from November, to Pesos 8,204.55/mt in December resulting in a higher equivalent feedstock cost of Pesos 36.91/liter ($0.7/liter).
Cost of the other feedstock, sugarcane, was pegged at Pesos 28.64/liter ($0.55/liter) in December, up 1.6% from November. Sugar prices increased by a similar magnitude to Pesos 1,548.16/lkg, equivalent to $589.90mt.
The Philippines had faced higher ethanol feedstock costs, which had accelerated following passing of the Tax Reform for Acceleration and Inclusion, or TRAIN, bill from January 1, 2018, which introduced taxes on sweetened beverages leading to major beverage companies in the country switching to high-fructose corn syrup with sugar in their production process.
