The Philippines has permitted the temporary use of higher-sulphur Euro II fuel in select sectors to safeguard supplies amid escalating global oil disruptions linked to the Middle East conflict.
The Department of Energy announced on 22nd March that it has authorised the limited importation and use of Euro II-compliant petroleum products. This marks a temporary step back from the country’s Euro IV standard to maintain fuel availability during the crisis.
“The measure is intended to help maintain a continuous, adequate and accessible fuel supply, while allowing limited flexibility for sectors that may be affected,” the DOE said in a statement.
The policy allows the use of Euro II fuels for vehicles from model year 2015 and earlier, as well as traditional jeepneys, power plants and generators, and the marine and shipping sectors.
Oil companies offering Euro II fuels must ensure strict segregation from Euro IV products across storage, transport, and retail systems to prevent contamination and maintain environmental compliance.
The Philippines transitioned to cleaner Euro IV-compliant fuels in 2016, replacing Euro II. Euro IV fuels contain sulphur at 50 parts per million, compared with 500 parts per million in Euro II fuels, resulting in significantly lower emissions of harmful pollutants.
While the temporary shift is intended to prevent shortages, it has raised environmental concerns due to the higher emissions associated with Euro II fuel.
The policy follows sharp increases in global oil prices triggered by the US-Israel war on Iran, which has disrupted Middle Eastern supply routes and driven up costs worldwide. The Philippines, which relies heavily on imported oil from the region, has experienced significant domestic price increases.
Last week, thousands of jeepney drivers staged nationwide protests after diesel prices more than doubled, highlighting the strain on public transport operators and commuters. Demonstrators called for government intervention to ease the burden on low-income drivers.
In response to the crisis, the government has introduced several measures, including shortened work weeks in some sectors, fuel subsidies, and the securing of emergency powers from Congress to suspend or reduce fuel taxes.
President Ferdinand Marcos Jr said in a video message on 22nd March that authorities are pursuing alternative fuel supply arrangements, with ongoing talks involving India, China, Japan, South Korea, Thailand, and Brunei.
The country is also preparing to import Russian oil this month for the first time in five years as part of efforts to diversify supply sources.
The Department of Energy stressed that the Euro II allowance is a time-bound contingency and does not replace existing Euro IV standards. Energy Secretary Sharon Garin described the measure as narrowly targeted, with strict regulations that include quality controls, retailer notification requirements, and consumer protections.
Officials said fuel supply remains adequate for now and that the situation continues to be closely monitored, with further adjustments possible depending on global developments.
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