Solon does not want to bring back Euro-2 diesel for
transport sector
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| Marinduque Representative Lord Allan Velasco |
Velasco, who also chairs the House committee on energy,
however, said in a statement Friday that although he appreciated the aim of the
policy, “the DOE should have carefully studied [its] economic, health, and
environmental impact in order to determine whether the desired benefits
outweigh the expected negative effects.”
The congressman pointed out that the Philippine government
phased out Euro-2 fuels more than two years ago, and mandated the use of Euro-4
fuels because of Euro-2 fuel’s negative effects on the environment, peoples’
health, and the economy.
At the hearing, Velasco questioned DOE officials director
Rino Abad and Undersecretary Donato Marcos on the manner by which the
department order was issued. Other stakeholders from the petroleum industry, the
transportation sector, and clean air advocates also expressed their opposition
to order.
Velasco said that he fears that “considering DOE’s failure
to seriously consider the comments of the stakeholders in this regard, then any
projected savings from using the Euro-2 fuels might just be eaten up by the
rise in Euro-2 fuel prices due to the increased demand and/or increased
expenses incurred by the downstream oil industry in complying with the said
order.”
“Such expenses may ultimately be passed on to the consumers
and exacerbate inflation, negating any benefits as a result. Moreover, this
reversion to Euro 2 fuels raises other concerns of the downstream oil industry
such as logistics, product adulteration, and smuggling,” he added.
Several oil companies have said that they had to retrofit
fuel stations to accommodate Euro-2 and this would take time and money. Others
said they have already finished their fuel procurement for the next months.
In an effort to reduce air pollution in the country in
compliance with the Clean Air Act, the government, after years of delay,
adopted Euro-4 emission standards beginning in 2016. The Euro-2 diesel was
replaced with the Euro-4 which has 90 percent less sulfur, 57 percent less
nitrogen oxides and 50 percent less carbon monoxide. -
