The Philippines' Sugar Regulatory Administration set the local monthly allocations, or LMAs, for domestic ethanol production at 114,633 cu m for the third quarter of this year, a source with a major Philippine oil company told S&P Global Platts Tuesday.
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This is 40,983 cu m (55.7%) higher than 73,650 cu m for Q2 2018 and 35,833 cu m (45.5%) higher than 78,800 cu m for Q3 2017.
The Q3 2018 LMAs comprise 48,633 cu m for July, 33,250 cu m for August and 32,750 cu m for September.
The LMAs are determined every quarter and oil companies in the Philippines are allocated a purchase quota proportionate to their market share in the retail gasoline market.
Philippine oil companies are required to fulfill their domestic allocations before they import cheaper fuel-grade ethanol.
Meanwhile, the Philippines' domestic bioethanol reference price for April rose 3.4% month on month to a 13-month high at Pesos 53.54/liter ($1,071/cu m), according to data released by the SRA Tuesday.
The average imported fuel ethanol price for April was $486.75/cu m CIF Philippines, making the domestic price more than double that of imported ethanol, Platts data showed.