ESPRESSO MORNINGS

By Joe Zaldarriaga

Mr. Joe Zaldarriaga, fondly called “Manong Joe”, is a distinguished figure in the country’s corporate communications landscape. Holding the position of Vice President and Head of Corporate Communications at Manila Electric Company (Meralco), he has orchestrated unparalleled success for the utility company, winning accolades for their brand of service communications.
He was the architect behind Meralco’s most celebrated milestones in the field of communications— steering the company to five-time Company of the Year honors at the Philippine Quill Awards and leading the only PR team ever named Team of the Year in the history of the Anvil Awards.
Manong Joe’s leadership also extends as a respected member of the Board of Trustees for the Public Relations Society of the Philippines (PRSP), concurrent with his role as Chairman of the International Association of Business Communicators Philippines (IABC Philippines) where he also served as its President.
Manong Joe is a distinguished awardee of the medallion of honor and scroll of commendation from the University of Manila, owing to his years in public service as a communications professional. He shares his insights through columns in renowned publications, including The Philippine Star’s The Z Factor, and Philippine News Agency’s ESPRESSO MORNINGS.

As the Middle East conflict persists, the Philippines (along with other nations) once again finds itself at the mercy of global oil markets. With the crisis further exposing supply chain vulnerabilities—more Filipinos are beginning to see how inseparable energy security is from safeguarding economic stability, and national and global security.

While motorists and public transport operators remain on the frontlines of the crisis, its ripple effects are now reaching households. This week, fuel prices are expected to significantly increase again, further aggravating inflationary pressure on businesses and household budgets. Diesel prices are nearing a historic PHP170 per liter threshold while gasoline prices are hovering around PHP120 per liter. Households can only stretch their budgets thin for too long before these shocks become unbearable.

This crisis is a reminder that while we cannot control global conflicts or volatility of international markets, we can take steps to cushion the impact and, over time, insulate our country from such uncertainty. One strategic opportunity we have is to strengthen and promote the local biofuel industry to reduce our dependence on imported diesel and diversify our energy mix.

By promoting biofuels, we immediately have a cushion to somehow ease the burden of rising fuel costs, and at the same time, we help build a stronger infrastructure for our long-term energy security.

Using biofuel is nothing new. In fact, this is already mandated by the Biofuels Act of 2006, which aims to promote the development of alternative energy sources. Under the said law, petroleum companies are required to blend locally produced biofuels with conventional fuel products. Gasoline for example must contain bioethanol while diesel must include biodiesel.

Ramping up the local production of biofuels will not only cushion the impact of soaring fuel prices but it will also boost the local coconut oil industry to help Filipino farmers.

The implementation of the law was designed specifically to protect our country from global oil industry volatility and shocks. The current crisis should serve as a wake-up call to strengthen the implementation of the Biofuels Act to reduce our exposure to volatile global prices.

Biofuels are also more sustainable compared to fossil fuels. Studies show that biofuels reduce greenhouse gas emissions by up to 65% and offer better vehicle engine lubricity, enhancing longevity and boosting mechanical efficiency.

Biofuel production can also help stimulate rural economies, providing farmers with new markets and thereby boosting their livelihood and in effect, their purchasing power.

But ramping up local biofuel production is easier said than done. Government cannot simply set blending targets and hope that fuel companies comply, it must regulate the industry and provide infrastructure support to scale up production. The industry needs investment to scale up production of biofuel and one of the most effective ways to accelerate this is through public-private partnerships.

Of course, to attract investors, the government must provide an enabling environment with clear and consistent rules, and long-term support for the biofuel industry. A strong, clear, and predictable framework will encourage investors to put in money, producers to expand capacity, farmers to diversify crops, and consumers to patronize biofuels. Regulators should also ensure that blending rules are followed and that standards are met to foster consumer trust in biofuel.

The use of biofuels should not only serve as a stopgap measure in light of the Middle East conflict, but it should also be seen as a path towards achieving long-term stability and energy security.

Of course, biofuels alone are not enough to achieve national energy security, but they are a critical part of the groundwork to achieve this goal. The persisting Middle East crisis continues to upend supply chains and expose vulnerabilities in our current energy model presenting us with an opportunity to rethink our dependence on imported fuel.

I hope we don’t waste this opportunity to embrace strategies that will serve our country in the long term. Biofuel technology and its growth are something we can truly develop and call our own.