DoE clears limited rollout of Euro II fuels

THE DEPARTMENT of Energy (DoE) is allowing the temporary rollout of Euro II, or fuels that meet an older emission standard with higher sulfur content, for select transport and industrial uses to augment fuel supply.

In a statement on Sunday, the DoE said it has issued a department circular authorizing the “temporary and controlled” introduction of Euro II petroleum products in response to the ongoing conflict in the Middle East, which continue to strain global petroleum markets.

The measure aims to help keep adequate fuel supply, while allowing limited flexibility for sectors that may be affected, the department said.

The DoE said that the rollout is “interim, narrowly targeted, and strictly regulated.”

Under the circular, only in-use vehicle models from 2015 and earlier, traditional jeepneys, industrial applications such as power plants and generators, and the marine and shipping industry are allowed to temporarily use Euro II fuels.

To avoid misuse and ensure product integrity, downstream oil industry players are required to keep Euro II and Euro IV fuels fully segregated across storage, transport, and retail systems.

Fuel companies intending to offer Euro II fuels must also notify the DoE, through the Oil Industry Management Bureau, and identify the retail outlets where such products will be made available.

The DoE said it will conduct random product sampling and testing across downstream oil facilities to ensure compliance.

To keep consumers informed, the circular requires the posting of clear and prominent advisories at fuel stations and other retail outlets offering Euro II products.

The DoE said the measure was adopted following consultations with the oil and automotive industries from March 16-18 to ensure that the policy is technically feasible and operationally manageable.

It clarified that the rollout does not replace the country’s Euro IV fuel standards, which remain in force under existing laws and regulations.

“We are adopting a prudent and temporary measure to help ensure an adequate and accessible fuel supply for sectors that may require limited flexibility during this period,” Energy Secretary Sharon S. Garin said.

Ms. Garin said this measure is subject to strict quality controls, clear notification requirements, and appropriate consumer protection measures.

“Our objective is to uphold fuel supply security while remaining guided by safety, regulatory discipline, and the broader public interest,” she said.

Since 2015, the Philippines has limited the motoring industry to the use of Euro IV fuels, a globally accepted standard that has a significantly lower sulfur content.

The ongoing US-Israeli war against Iran continues to raise supply concerns, which continues to drive prices to historic levels.

Last week, several oil companies implemented another round of double-digit increases in pump prices, pushing diesel costs above P100 per liter.

An industry source earlier said that initial estimates point to another fuel hike this week, extending the recent sharp increases as the war continues to fuel volatility in global energy markets. — Sheldeen Joy Talavera