Energy dep’t to review ‘dirty’ fuel sale order

The Department of Energy (DOE) will review its order directing oil companies to offer the cheaper Euro 2-compliant diesel to cushion the impact of rising petroleum prices, after lawmakers called for a stop to its implementation at a congressional oversight hearing on Thursday.

Senator Sherwin Gatchalian, chair of the oversight committee on biofuels, called for the cancellation of the DOE order.

Co-chair Marinduque Rep. Lord Allan Velasco sought its suspension, while committee member Sen. Aquilino Pimentel III said the directive should be reviewed.

According to Gatchalian, Euro 2 diesel is not eco-friendly, runs counter to the Clean Air Act, poses health risks, and may not be a cheaper option in the end.

He also said the directive went against the administration’s jeepney modernization program that required public utility vehicles (PUVs) to use Euro 4-compliant diesel, which is generally considered to be a “cleaner” fuel.

Optional order

The lawmakers also questioned the wording of the DOE order, which appears to require oil firms to offer the Euro 2 diesel, despite energy officials saying this would be optional.

The directive also failed to specify how long Euro 2 diesel would be offered despite the DOE claim that this would only be temporary, they said.

Energy Undersecretary Donato Marcos said the department would take another look at the order and talk to the sectors that might be affected by its implementation.

“We have to review, we have to again have some stakeholders’ and public consultations to really address what is the ultimate objective of this department order,” Marcos told reporters after the hearing.

He said the DOE order was meant to help members of the marginalized sectors such as jeepney drivers and small fisherfolk who use diesel in their boats to cope with rising fuel prices.

Euro 2 diesel is 30 centavos cheaper than the Euro 4 fuel currently available in the market.

Sulfur content

During the hearing, Rino Abad, director of the DOE Oil Industry Management Bureau, said Euro 2- and Euro 4- compliant diesel did not differ much except in their sulfur content.

The sulfur content of Euro 2 is 500 parts per million, while that of Euro 4 is 50 parts per million.

But Abad said the emissions from using these two types of fuel would not differ much because most PUVs had no converter to properly process the Euro 4 diesel.

The Department of Health’s Luis Cruz cited the statement of Health Secretary Francisco Duque that the DOE directive could have a negative impact on both public health and the environment. It could aggravate respiratory illnesses, he said.

Gatchalian also said Euro 2 diesel might not prove to be cheaper in the end because gas stations would need to spend for new tanks for this and they might pass on the costs to consumers.