MANILA, Philippines — The Department of Energy’s directive to local oil companies to provide Euro 2 compliant automotive diesel as a temporary solution to help reduce fuel prices does not violate environmental standards, a top DOE official said.
“The DOE will not issue this option if it will violate any environmental standard or any health standards,” Energy Undersecretary Felix William Fuentebella said.
The government earlier mandated all fuel companies to sell Euro 4 compliant fuel products starting 2016.
Euro 4 is a globally accepted European emission standard for vehicles which require significantly low amount of sulfur and benzene. It has a significantly lower sulfur content of 50 ppm (parts per million), compared to the Euro 2 standard of 500 ppm.
Benzene in gasoline also measures only one percent by volume, compared to five percent for Euro 2 fuel.
Fuentebella emphasized that the directive of the DOE to oil companies to sell Euro 2 compliant diesel is its contribution to helping the country address rising fuel prices due to inflation.
He added that this gives consumers a slightly more affordable option.
Selling Euro 2 compliant diesel will also create competition among local oil companies, according to Fuentebella.
“Some of the players are positive about it because it’s an opportunity to expand their market,” the DOE official said.
Meanwhile, the Independent Philippine Petroleum Companies Association (IPPCA) on Tuesday offered another solution to cutting down fuel prices for consumers, particularly through the suspension of the implementation of Republic Act 9637 or the Biofuels Act of 2006.
“With the suspension of the prescribed biofuels blend on gasoline and diesel, motorists could expect a P2 per liter and P1.80 per liter price reduction on the pump price of gasoline and diesel, respectively,” IPPCA said in a statement.
IPPCA added that it believes that suspending the prescribed biofuel blend on fuel products would be more effective in bringing down local fuel prices, instead of reintroducing Euro 2 diesel that might not be feasible due to logistical concerns and minimal price reductions.
With Euro 4 in effect and 10 times cleaner than Euro 2, IPPCA said blending of ethanol and biodiesel is no longer needed in achieving cleaner emissions from both gasoline and diesel products.
IPPCA pointed out that recent spikes and scarcity of table sugar could be attributed to the use of the same raw material, as sugar cane used in ethanol production is given higher priority due to its mandatory 10 percent blend in all gasoline products, thus making locally produced ethanol more expensive by P4 per liter as against imported gasoline.
It added that Department Order 002018-08-0012, which directs oil companies to provide Euro 2 compliant diesel caught local oil players by surprise. The organization described the order as „ill advised“ and therefore must be recalled.
IPPCA pointed out there is not much difference between the price of Euro 2 and Euro 4 diesel as domestic and international refineries have upgraded and shifted their production to Euro 4 and even Euro 5 compliant diesel products, which made Euro 2 diesel even less available.
It said the reintroduction of Euro 2 is a setback to the government and industry stakeholders’ for cleaner air. It added that going back to Euro 2 means reverting to fuel with 10 times more sulfur at 500 ppm as against the much cleaner diesel that is 90 percent less sulfur with only 50 ppm.
The organization added that offering Euro 2 is a logistical nightmare for oil companies, as it would require additional investments for the installation of underground tanks at the retail outlets, since Euro 2 diesel could not be commingled with Euro 4 diesel.
“The directive also undermines President Duterte’s directive banning smoking in public places to protect people from the ill effects of smoking and second hand smoke. Now the DOE issued a department order that reverses the Clean Air Act of 1999 – which is intended to protect Filipinos from the ill effects of polluted air,” IPPCA said.