Ethanol consumption in the Philippines is expected to increase by nearly 4% in 2026, while imports are also projected to rise as demand for fuel ethanol continues to grow, according to the Ethanol Producer Magazine, citing a report submitted to the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
The Philippines currently requires gasoline to contain 10% ethanol, known as E10. The country also has a voluntary E20 programme, allowing a 20% ethanol blend, which is currently available at nine fuel stations.
The country has 13 fuel ethanol plants with a combined production capacity of 468 million litres. Capacity utilisation is expected to rise to 82.3% in 2026, compared with 80.5% in 2025.
Sugarcane and molasses are the main feedstocks used by Philippine ethanol producers. About 1.3 million tonnes of molasses and 640 tonnes of sugarcane are expected to be used for ethanol production in 2026.
Total ethanol consumption is forecast at 1.145 billion litres in 2026, compared with 1.106 billion litres in 2025. Fuel ethanol consumption is expected to reach 875 million litres, up from 860 million litres last year.
Domestic ethanol production is also expected to increase to 420 million litres in 2026, compared with 412 million litres in 2025 and 417 million litres in 2024.
Fuel ethanol production is projected at 385 million litres this year, up from 377 million litres in 2025 and 382 million litres in 2024.
However, higher domestic production is not expected to reduce the Philippines’ dependence on imported ethanol. Total ethanol imports are projected to rise to 725 million litres in 2026, compared with 696 million litres in 2025 and 589 million litres in 2024.
Fuel ethanol imports are forecast at 490 million litres in 2026, compared with 485 million litres in 2025 and 409 million litres in 2024.
The US remains the largest supplier of fuel ethanol to the Philippines. US-origin ethanol accounted for 89% of the country’s fuel ethanol imports last year, up from 70% in 2025.
The increase in ethanol consumption, along with higher domestic production and continued reliance on imports, is expected to drive the Philippine fuel ethanol market in 2026. Domestic plants are expected to operate at higher utilisation levels while imports continue to meet a significant share of demand.
