THE Department of Energy (DOE) has ordered local oil companies to prioritize the acquisition and consumption of locally-manufactured ethanol for their blended gasoline requirements.

Energy Secretary Jose Rene Almendras issued Circular 2011-12-0013, or the Guidelines on the Utilization of Locally-produced Ethanol in the Production of Ethanol-blended Gasoline (E-Gasoline) in move to nurture the growth of the fledgling local ethanol industry.

“In order to sustain and expand the local ethanol industry, the mandatory exhaustion of locally-sourced ethanol must be complied [with] and importations of ethanol-blended gasoline shall not be considered as part of the compliance to the biofuels mandate pursuant to Biofuels Act of 2006,” the circular said.

It noted that consultations with various stakeholders and the National Biofuels Board determined that the volume of local ethanol production remains insufficient to supply the local oil industry with the volumes set to meet the mandated gasoline-ethanol blend.

“Given this situation, bioethanol may be imported by the oil companies subject to the guidelines set forth by the Energy Department and the Finance Department under Circular 2006-08-0011 and Revenue Regulation  8-2006, respectively,” the circular said.

The circular requires oil companies to submit their performance compliance report every month on their procurement plan for local and imported ethanol. Ethanol producers, on the other hand, will also be required to file  their monthly production report.