MANILA -- The Department of Transportation (DOTr) opposes a directive of the Department of Energy (DOE) for oil companies to offer Euro-2 compliant diesel at fuel stations to mitigate the impact of the recent series of oil price increases to motorists.
The DOTr said DOE Memorandum Order No. 002018-08-0012 is a setback to ongoing efforts to provide clean and environmentally sustainable energy in the country.
“The Department of Transportation (DOTr) finds this order a retrogression that takes us several steps back when we should be moving forward. The DO also runs counter to the Clean Air Act, which was enacted into law in 1999. The law mandates the sale of Euro-4 fuel for passenger and commercial vehicles in the country starting 2017, and Euro-4 compliant vehicles starting January 2018,” the department said in a statement Monday.
The DOTr also stressed that the costs that will be saved by the transport sector on the use of Euro 2 diesel will not offset its impact on public health and economic losses as a result of pollution and its health-related consequences.
The department has also vowed that it is committed on implementing the Public Utility Vehicle Modernization Program which aims to replace jeepney units that are 15 years old with Euro 4-compliant engines.
“Filipinos deserve a safe and clean environment. And, we believe that this is the safer and environment-friendly option, the international standard, and this is the way forward,” according to the DOTr.
For its part, independent oil firms urged the government to suspend provisions under the Republic Act 9637 or the Biofuels Act of 2006, which require oil companies to buy biofuels from local manufacturers
The Independent Philippine Petroleum Companies Association (IPPCA), meanwhile, said 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.
Motorists are expected to get a PHP2 per liter and PHP1.80 per liter cut in the pump prices of gasoline and diesel respectively with the suspension of the prescribed biofuel blend on gasoline and diesel, according to the IPPCA.
It added that Euro 4 is 10 times cleaner than Euro 2, and blending of ethanol would no longer be needed in achieving cleaner emissions from gasoline products.
The IPPCA is an association of independent oil players which includes members such as Eastern Petroleum Corp., Filoil Gas Co., Inc., Filpride Energy Corp., Pryce Gases, Inc. and Seaoil Philippines, Inc.
The DOE earlier said motorists will be able to save on fuel costs if they will purchase Euro-2 diesel products for their vehicles.
Euro 2 diesel, which contains higher sulfur content, costs PHP0.28 to PHP0.30 less than Euro 4 based on the estimate of the energy department. (PNA)
