"We have to see if they really offered the CAA-compliant diesel on all their gasoline stations in Metro Manila," DOE oil industry administration bureau director Zenaida Monsada said.
Five new players – Eastern Petroleum Corp. (EPC), Seaoil Petroleum Corp., Unioil Petroleum Philippines Inc., City Oil, and Jetti Corp. – launched last Aug. 26 the "Pure Diesel," the first product to comply to the 0.05 percent sulfur content under the CAA.
Pure Diesel was apparently made available to the 180 service stations of the five new oil companies starting Aug.18.
The oil companies signed a covenant with the DOE to voluntarily accelerate the use of low sulfur diesel in all their service stations and retail outlets in Metro Manila by Nov. 1, 2003.
As mandated under R.A. 8749 or the Clean Air Act, oil companies are directed to reduce the sulfur content of automotive diesel by 75 percent from 0.2 percent to 0.05 percent effective Jan. 1, 2004.
"They have to be true to their commitment. They will be accused of mislabeling if they will not follow what they have signed," Monsada said.
Last week, Petron Corp. became the first of the three big players to offer a CAA-compliant diesel in one of its gasoline stations in Quezon City. Petron expects all its stations in Metro Manila to sell the cleaner diesel within the next few days, or before Nov. 1 this year.
By Oct. 13 (Monday), Pilipinas Shell Petroleum Corp. is also expected to launch its own low-sulfur diesel.
The oil companies that have complied earlier-than-expected have vowed not to adjust their prices to recover the cost of the early compliance. The impact of the CAA’s new specification is estimated at 20 to 30 centavos per liter.
City Oil president Frederick Tagorda said they will try to absorb the initial cost of the early implementation. "We will shoulder the cost as long as we can," Tagorda said. City Oil has eight service stations in Metro Manila and Cavite.
EPC chairman Fernando Martinez and Unioil spokesman Lawrence Luang made the same commitment of absorbing the cost of early implementation of the said fuel.
Petron public affairs manager Virginia Ruivivar, for their part, said that initially, the company will not pass on the added cost of cleaner diesel "so that consumers may enjoy its benefits at the least cost."