DOE allows temporary Euro 2 fuel amid Middle East crisis

Amid a fuel supply crisis, the Department of Energy (DOE) has authorized the temporary importation and use of Euro 2 petroleum products, which have higher emissions than the Euro 4 standard. The measure is limited to vehicles from 2015 and earlier, traditional jeepneys, power plants, generators, and marine sectors. President Marcos is in talks with several countries for alternative oil supplies.

The Department of Energy (DOE) issued a circular authorizing the temporary and controlled use of Euro 2 fuels in transport and industrial sectors to conserve depleting reserves amid a fuel supply crisis triggered by the Middle East conflict. The Philippines relies on Middle East crude for roughly 98 percent of its imports, according to the DOE. The measure, adopted after consultations with oil and automotive industries last week, applies only to in-use vehicle models from 2015 and earlier, traditional jeepneys, power plants, generators, and marine and shipping sectors. “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 Garin said. Euro 4 standards remain in force, and oil companies must keep Euro 2 and Euro 4 fuels separate in storage, transport, and distribution. Companies must notify the DOE via the Oil Industry Management Bureau of their intent and specify retail outlets. The DOE will monitor compliance through random sampling and testing, with penalties for violations. A 2015 DOE circular mandated Euro 4 compliance under the Philippine Clean Air Act of 1999. Euro 4 fuels have 50 ppm sulfur content versus 500 ppm for Euro 2; the country switched to Euro 4 in 2016. President Marcos said talks are underway with India, Japan, South Korea, China, Brunei, and Thailand for oil supplies. Fuel subsidies have reached nearly 100,000 tricycle drivers, with more aid nationwide from April 6.

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Image of a gas station in the Philippines illustrating rising fuel prices amid Middle East tensions.
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Oil companies raised gasoline and diesel prices on May 19 while lowering kerosene rates, citing renewed geopolitical risks in the Middle East. The Department of Energy set maximum adjustments to stabilize the market.

The Department of Energy welcomed progress in US-Iran peace talks but cautioned that restoring domestic fuel prices to pre-crisis levels could require six to 12 months. Officials emphasized that the situation now involves broader economic effects beyond oil supply.

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