Unioil ready to comply with Clean Air Act

Unioil, one of the new entrants in the local oil industry, said yesterday it is ready to comply with the requirements of the Clean Air Act (CAA).

Unioil vice president for corporate communications Lawrence Luang said his company could easily source CAA-compliant unleaded gasoline from its present suppliers within the Asia Pacific region.

The CAA stipulates that by year 2003, unleaded gasoline fuel should contain aromatics not to exceed 35 percent by volume and benzene not to exceed two percent by volume. Currently, the aromatic content requirement is 45 percent and the benzene content requirement four percent.

Luang said that since the oil companies can source out the CAA-compliant fuel elsewhere, there is no need to delay the implementation of the CAA.

"Unioil feels that it is unfair to the public that the implementation of the aromatic and benzene reduction is being delayed using supply situation concerns brought about by the threat of war in the Middle East and possible increase in price as justifications," he said.

Senate and House leaders are convinced that there is a need to temporarily suspend the implementation of the CAA given the possible impact of this on oil prices which will directly affect of consumers.

Based on initial industry estimates, there would be an increase of about P0.80 to P1.50 per liter in the price of unleaded gasoline if the CAA is implemented next year.

"Unioil firmly believes that both the Clean Air Act 2003 mandate and the inventory requirement due to the Middle East tension can be accomplished without any comprise," Luang noted. He said the oil firms have been given ample time to comply with the requirements of the CAA.

"The CAA was enacted in 1999, giving the oil companies plenty of time to prepare for this requirement. The Middle East tension has been there since early part of this year. The compliant unleaded gasoline may not be produced locally by the oil majors as their refineries are not capable of producing the said required gasoline but compliant products could be easily imported abroad," he said.

On the price concern, Unioil estimates that the impact of the 2003 CAA compliance would be around 20 centavos only, much lower than the projected 80 centavos to P1.50 per liter.

"Unioil does not see the need to delay the implementation of the CAA mandate. The provisions on reduction are meant to safeguard the public’s welfare, particularly the public’s health as the aromatic content of gasoline is considered as the most insidious form of gasoline toxicity and benzene is known as a human carcinogen and exposure to very high levels may cause cancer. Given these alarming health hazards, the aromatics and benzene content should expediently be reduced," he said.