Gatchalian wants DOE to cancel order to sell cheaper, dirtier fuel
MANILA, Philippines — Sen. Sherwin Gatchalian on Thursday called on the Department of Energy to scrap its order allowing the sale of cheaper but dirtier fuel to bring down pump prices and tame inflation.
The DOE early this month issued a department order directing all industry players to provide Euro 2 compliant automotive diesel oil “as a fuel option” for the public to “reduce the impact of rising petroleum prices in the world market.”
Euro 2 fuels, which have 500 parts per million (ppm) of sulfur, are about 30 centavos cheaper than Euro 4 fuels, which are cleaner and have 50 ppm sulfur content.
At a congressional hearing, Gatchalian, chairman of the Senate Committee on Energy, noted the health department’s opposition to the importation of Euro 2 fuels.
He also pointed out the objection of oil companies to the DOE’s order as it would require them to invest in additional equipment to process Euro 2 diesel, and subsequently pass on the cost to motorists.
The Philippines has not imported Euro 2 diesel since 2016 after the country switched to Euro 4 compliant fuels to follow higher emission standards.
“My call is to cancel the circular... In my humble opinion, there’s no benefit or whatsoever in adopting Euro 2 once more,” Gatchalian said.
Inflation jumped to a nine-year high of 5.7 percent in July on the back of higher food and transport costs.
For their part, committee co-chairman Rep. Lord Allan Velasco (Marinduque) and Sen. Aquilino Pimentel III told the DOE to suspend and revise its department order, saying the document is confusing.
“Magulo eh (The order is confusing). The department order says mandatorily we have to implement, now you’re saying optional,” Velasco said.
“Since the department order is really messed up... I think you have to go back to your drawing board and re-draft your department order and in the meantime, I think you have to suspend this first,” he added.
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