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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Motorists queue at a Metro Manila gas station with elevated fuel prices despite Strait of Hormuz safe passage assurances amid Iran war effects.
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Fuel prices stay high in Metro Manila despite Hormuz safe passage assurances

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Despite Philippine officials securing safe passage assurances through the Strait of Hormuz from Tehran, fuel prices in Metro Manila remained elevated on April 4 amid lingering effects of the Iran war—following President Marcos' March 24 national energy emergency declaration.

Department of Energy Secretary Sharon Garin stated that the Philippines faces no oil crisis, as fuel supply remains adequate despite record-high prices. She attributed the issue to rising global oil prices, not shortages. The DOE is monitoring distribution and warning against hoarding.

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Following initial DOE warnings earlier this week, local oil retailers in the Philippines will implement double-digit fuel price increases of P17 to P24 per liter starting March 10, amid ongoing Middle East tensions. President Marcos plans to seek emergency powers to cut excise taxes.

Malacañang has acknowledged the efforts of local government units and the private sector to mitigate the effects of the Middle East crisis, particularly on vulnerable groups. Executive Secretary Ralph Recto highlighted initiatives like boosting fuel supplies and providing free transportation. He described these as a synergy ensuring the nation's energy security amid external pressures.

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The Philippines has approached Russia for possible oil imports amid global supply disruptions, Energy Secretary Sharon Garin said. Fuel inventories are sufficient until April, with talks ongoing with other exporters. The move responds to surging prices from Middle East tensions.

Energy Secretary Sharon Garin said Filipinos will need to change lifestyles if global oil prices reach $200 per barrel, as the scenario no longer seems far-fetched three weeks into the Middle East war.

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José Antonio Kast's government issued decrees tweaking the Mepco, allowing historic gasoline and diesel price hikes starting March 26. The move addresses surging oil prices from the Iran war and fiscal tightness, with relief for paraffin and transporters. Congress approved the bill after negotiations exempting SMEs from higher taxes.

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