Task force formed to monitor compliance of oil firms to CAA

The Department of Energy (DOE) has created a task force on Liquid Fuels to specifically monitor the compliance of oil companies to the Clean Air Act (CAA).

Zenaida Monsada, head of the DOE’s Energy Industry Administration Bureau (EIAB), said the creation of the task force would allow both the government and the private sector to act together against illegal activities related to liquid fuels like smuggling and pilferage.

Monsada said the DOE started forming the task force late last year. The group will be composed of the energy secretary as chairman and representatives from oil industry players, particularly in the Big "3" oil firms.

She said a working group has already been formed to start monitoring compliance of the oil firms in the new gasoline specifications of the CAA.

As this developed, the DOE yesterday conducted a random sampling in two retail gasoline stations (Wack-Wack Petron and Shell in Uno St.) in Shaw Boulevard, Mandaluyong City to check if oil suppliers and retailers are complying with the new CAA specifications which were implemented starting Jan. 2 this year.

The DOE’s random sampling scheme for CAA is expected to cover at least a third of the 3,000 gas stations all over the country within the next two to three months.

So far, Monsada said they have already tested at least 200 gasoline stations in key cities in Metro Manila and Cebu.

Based on the approved testing scheme for CAA compliance, the DOE will get sample from the gasoline pumps on a random basis. A sample bottle will be brought to the DOE laboratory for testing. The result of the test, Monsada said, will be determined within the day. DOE has already procured the special equipment to be used for this purpose.

Last Dec. 23, 2002, the DOE released a Memorandum Circular No. 2002-12-001 to govern the implementation of the new CAA specifications.

Beginning Jan.2, 2003, only gasoline fuel containing a maximum aromatics and benzene content of 35 percent and two percent (by volume), respectively, may be manufactured, imported, sold, supplied, offered for sale, dispensed, transported or introduced into commerce in the Philippines.

Meanwhile, the DOE may require oil companies to maintain a so-called minimum in-stock inventory as part of their compliance with Executive Order No.134, an energy official said yesterday.

"It (level of in-stock inventory) will definitely be lower than the current minimum normal average inventory because this will not take into account the inventory in transit outside the country," Monsada said.

Monsada, however, declined to specify the minimum level that would be required by DOE on the in-stock inventory. But she said this would definitely be lower than the present minimum normal average inventory of 50-60 days. "We have to ensure that the oil companies have a ready stock in case of emergency," Monsada said.