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.

Oil firms confirmed price rollbacks effective 6 a.m. Tuesday, April 14, matching Department of Energy projections: diesel down P20.89 to P23 per liter, gasoline P4.43 to P4.50, and kerosene P8.50. The cuts end surges of over P100 on diesel since late February's Middle East crisis. President Marcos suspended excise taxes on LPG and kerosene, while a jeepney subsidy launches.

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Following the first 142,000-barrel shipment that arrived on March 26, the Philippine government has secured a total of 1.04 million barrels of diesel to bolster the country's fuel buffer amid the global oil crisis. The remaining 900,000 barrels are expected next month, helping maintain stocks above minimum levels during the energy emergency.

The House of Representatives has approved a bill on second reading granting President Marcos special powers to suspend or reduce excise taxes on fuel to cushion the impact of soaring oil prices due to the Middle East conflict. This measure is part of broader government efforts to protect Filipinos from potential increases in commodity prices. Meanwhile, the Department of Transportation is studying a possible fare hike for public transport.

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Malacañang assured the public on Tuesday, March 10, that the Philippines has sufficient supplies of fuel and basic commodities despite rising global oil prices due to the ongoing Middle East crisis. There is no reason for panic buying, the Palace said. Government agencies are closely monitoring the situation to ensure market stability.

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