This research evaluates the economics of the Philippine alcogas and cocodiesel fuel programs. It examines the social cost-benefit as well as cost-effectiveness of the different projects of the programs and determines the conditions and policies that would significantly affect their economic desirability. In particular, the comparative advantage of the alternative fuel sources vis-à-vis imported petroleum is highlighted. The implication of prices particularly fuel and raw materials feedstock’s on the competitiveness of alternative energy sources is assessed under various simulated settings. The main conclusion of the study indicates that alcogas and cocodiesel fuels are prominently non-competitive against the conventional energy fuels. All programs in these energy sources look economically unattractive under the prevailing economic conditions.