Philippines allows limited use of lower-grade fuel to secure supply amid global oil volatility

MANILA, March 23 ------ The Department of Energy (DOE) has authorized the temporary and tightly regulated use of lower-grade petroleum products in a bid to safeguard the country’s fuel supply, as ongoing instability in the Middle East continues to strain global oil markets.

In a press release issued, the DOE announced Department Circular No. DC2026-03-0010, which permits the interim and controlled introduction of Euro II fuels for select transport and industrial uses. The agency said the measure is designed as a contingency response to ensure a “continuous, adequate, and accessible fuel supply,” particularly for sectors vulnerable to disruptions caused by volatile global oil prices.

Energy Secretary Sharon S. Garin underscored that the policy is both temporary and narrowly applied. “We are adopting a prudent and temporary measure to help ensure an adequate and accessible fuel supply for sectors that may require limited flexibility during this period,” Garin said in the press release. “This interim authority is subject to strict quality controls, clear notification requirements, and appropriate consumer protection measures,” she added.

Despite the move, the DOE emphasized that the country’s existing Euro IV fuel standards remain in force, clarifying that the policy does not signal a rollback of environmental regulations but rather a targeted response to external risks. Under the circular, the use of Euro II fuels will be restricted to in-use vehicle models from 2015 and earlier, traditional jeepneys, industrial applications such as power plants and generators, and marine and shipping operations.

To prevent misuse, oil companies are required to keep Euro II and Euro IV fuels strictly segregated across storage, transport, and retail systems. Firms must also notify the DOE, through the Oil Industry Management Bureau, and identify stations where the lower-grade fuel will be sold. “It warned that fuel adulteration, non-compliance with prescribed quality specifications, and other violations will be subject to penalties under existing laws, rules, and regulations,” the press release read.

The DOE also mandated clear labeling at fuel stations offering Euro II products. Retail outlets must prominently display advisories informing consumers that the fuel meets only Euro II specifications and that vehicle compatibility should be verified before use. Garin stressed that the policy balances energy security with public welfare. “Our objective is to uphold fuel supply security while remaining guided by safety, regulatory discipline, and the broader public interest,” she said.

The policy comes as geopolitical tensions in the Middle East continue to inject uncertainty into global petroleum supply chains, raising concerns over potential shortages and sustained price increases.

Source: news.abs-cbn.com