Ethanol demand in the Philippines is growing faster than domestic production

Ethanol demand in the Philippines is expected to continue growing faster than domestic production in 2026, increasing the country’s reliance on imports. Total ethanol consumption is forecast at 1.145 bln liters, up from 1.106 bln liters in 2025.

The fuel segment remains the main growth driver. Fuel ethanol consumption could rise to 875 mln liters from 860 mln liters a year earlier, supported by the mandatory E10 gasoline blend and the gradual expansion of E20.

At the same time, domestic ethanol production is expected to grow at a slower pace. Output in 2026 is forecast at around 420 mln liters, compared with 412 mln liters in 2025, including approximately 385 mln liters of fuel ethanol.

The country has 13 fuel ethanol plants with a combined annual capacity of 468 mln liters. Capacity utilization could rise to 82.3%, but this would still be insufficient to fully cover domestic demand.

As a result, ethanol imports into the Philippines are projected at 725 mln liters in 2026, compared with 696 mln liters a year earlier. The United States remains the main external supplier, accounting for the dominant share of the country’s fuel ethanol imports.

Tags: Philippines, ethanol