Published
By Myrna M. Velasco
In a sit-down
consultation with the downstream oil industry players this week, the Department
of Energy (DOE) has backtracked on its earlier hardline stance mandating oil
companies to sell Euro-2 diesel at their retail networks.
If the oil firms would
opt not to provide Euro-2 option at their stations, the DOE’s proposal will be
for them to offer additional discount of P0.30 per liter on a number of
stations they are supposed to nominate for the lower quality diesel sale.
Energy Secretary
Alfonso G. Cusi himself has presided the meeting with the oil companies; and he
also indicated to them that the Russian diesel importation of state-run
subsidiary Philippine National Oil Company-Exploration Corporation (PNOC-EC)
shall be treated as “strategic reserve” – although such concept for the
industry still rests on blurry line.
As of press time, no
commitments have been submitted to the government yet on the propounded Euro-2
lanes or the additional discounts being sought. So far, according to the oil
companies, the meeting with the Secretary ended with most of them wanting to
just extend additional discounts rather than downgrade their diesel sale at the
pumps to Euro-2.
On the implementation
of the Euro-2 option, the oil companies are mandated “to submit their
respective implementation programs by August 24, 2018,” to the DOE’s Oil Industry
Management Bureau.
In the propounded
implementation plans, the DOE prescribed that the oil firms must “indicate the
participating retail outlets, the date of intended implementation and other
related information for the provision of an additional diesel fuel
alternative.”
Cusi said the fuel
quality downgrade is in line with the State’s move in “finding ways to help
control inflation,” a serious economic dilemma caused by the government’s tax
reform program.
He noted this was
thought out as an option because many vehicles were still of 2015 models and
older; hence, they are compatible with the use of Euro-2 diesel, primarily for
those in the public utility sector.
“Owning older vehicle
models from 2015 and below, particularly in the transport sector, would benefit
from additional savings that the Euro-2 diesel fuel would provide…with rising
prices, each centavo of savings counts,” the energy chief stressed.
The energy department
similarly claimed that sulfur content in fuel is not part of the standard set
forth under the Clean Air Act, but the law itself defies that because such was
enumerated as part of the measures in determining ambient air quality guideline
values and standards under Section 12 (a) of Republic Act 8749 or the
Philippine Clean Air Act.
At the very least, the
DoE assured that it will continue “the stringent monitoring of the quality of
fuels being sold in the country.”
The agency added that
it has also been “enhancing competition among suppliers…this is what the Euro-2
diesel option is all about.”
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