Solon does not want to bring back Euro-2 diesel for transport sector

A House leader has expressed concern on the Department of Energy’s (DOE) decision to allow the downstream oil industry to offer “Euro-2 compliant diesel” to the transport sector.

Marinduque Rep. Lord Allan Jay Velasco, co-chair joint congressional oversight committee on biofuels, said the body tackled last Thursday the DOE’s recent department order on Euro-2 and its aim to reduce the impact of rising fuel prices.  The DOE earlier said the offering of the Euro-2 diesel was a temporary measure only and optional for the oil firms.

Velasco, who also chairs the House committee on energy, however, said in a statement Friday that although he appreciated the aim of the policy, “the DOE should have carefully studied [its] economic, health, and environmental impact in order to determine whether the desired benefits outweigh the expected negative effects.”

The congressman pointed out that the Philippine government phased out Euro-2 fuels more than two years ago, and mandated the use of Euro-4 fuels because of Euro-2 fuel’s negative effects on the environment, peoples’ health, and the economy.

At the hearing, Velasco questioned DOE officials director Rino Abad and Undersecretary Donato Marcos on the manner by which the department order was issued.

Other stakeholders from the petroleum industry, the transportation sector, and clean air advocates also expressed their opposition to order.

Velasco said that he fears that “considering DOE’s failure to seriously consider the comments of the stakeholders in this regard, then any projected savings from using the Euro-2 fuels might just be eaten up by the rise in Euro-2 fuel prices due to the increased demand and/or increased expenses incurred by the downstream oil industry in complying with the said order.”

“Such expenses may ultimately be passed on to the consumers and exacerbate inflation, negating any benefits as a result. Moreover, this reversion to Euro 2 fuels raises other concerns of the downstream oil industry such as logistics, product adulteration, and smuggling,” he added.

Several oil companies have said that they had to retrofit fuel stations to accommodate Euro-2 and this would take time and money. Others said they have already finished their fuel procurement for the next months.

In an effort to reduce air pollution in the country in compliance with the Clean Air Act, the government, after years of delay, adopted Euro-4 emission standards beginning in 2016. The Euro-2 diesel was replaced with the Euro-4 which has 90 percent less sulfur, 57 percent less nitrogen oxides and 50 percent less carbon monoxide.

Beginning this year, the government only allowed Euro-4 vehicles to be registered. /jpv

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