Philippines Allows Temporary Use of Lower-Grade Fuel as Oil Prices Surge

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Manila: The Philippines has approved the temporary and limited use of cheaper but more polluting fuel to ensure adequate supply amid disruptions linked to the Middle East crisis.

The Department of Energy said Euro-II compliant petroleum products will be allowed for older vehicles (model year 2015 and earlier), traditional jeepneys, power plants, generators, and the marine and shipping sectors.

“The measure is intended to help maintain a continuous, adequate and accessible fuel supply, while allowing limited flexibility for affected sectors,” the agency said in a statement.

Oil companies have been instructed to keep Euro-II fuels strictly segregated from cleaner Euro-IV fuels across storage, transport and retail systems.

The Philippines transitioned to Euro-IV fuels in 2016, which contain significantly lower sulphur levels compared to Euro-II.

The move follows protests by thousands of jeepney drivers over a sharp rise in diesel prices after global oil markets were rattled by the ongoing conflict involving the United States, Israel and Iran.

Authorities have introduced measures including fuel subsidies and reduced work weeks, while lawmakers granted emergency powers to adjust fuel taxes.

President Ferdinand Marcos Jr. said the government is also in talks with countries including India, China, Japan, South Korea, Thailand and Brunei to secure fuel supplies.

The country, heavily reliant on Middle Eastern oil, is also set to import Russian crude this month for the first time in five years.