Gasoline prices went up to P0.30 per liter effective 6 am Tuesday but kerosene prices went down P0.20 per liter.
The oil firms, however, said that diesel prices did not move.
“PTT Philippines to implement a P0.30 per liter increase on gasoline effective 6 am Tuesday, Aug. 21, 2018. No price movement for diesel,” PTT Philippines said.
Seaoil Philippines, meanwhile, also adjusted prices while others are expected to follow suit.
As this developed, Energy Secretary Afonso Cusi again clarified the department’s directive for oil companies to provide Euro-II compliant diesel fuel.
He said the move is meant to provide a cheaper diesel alternative, particularly for those operating older vehicles in the public transport sector.
“The DoE is actively finding ways to help control inflation. Bringing in Euro-II compliant diesel fuel gives our countrymen an additional option. Euro-II diesel matches diesel engines without the catalytic converter. These are usually the 2015, 2014 and earlier models of vehicles,” Cusi said.
The energy chief said those owning older vehicle models from 2015 below, particularly in the transport sector, would benefit from additional savings that the Euro-II diesel fuel would provide.
“With rising prices, each centavo of savings counts,” Cusi said.
To ensure proper implementation of the Energy Secretary’s directive, the DoE-Oil Industry Management Bureau has required all oil companies to submit their respective implementation programs by Aug. 24.
In their respective implementation plans, the oil companies are expected to indicate the participating retail outlets, the date of intended implementation and other related information for the provision of an additional diesel fuel alternative.
DoE assured consumers that it would continue the stringent monitoring of the quality of fuels being sold in the country.
“We empower our consumers when we give them the ability to choose. We are enhancing the competition among the suppliers. This is what the Euro-II diesel option is all about,” Cusi said.
The Independent Philippine Petroleum Companies Association earlier expressed apprehension on the directive to make Euro-II available at their retail stations.
IPPCA said DoE cannot force oil companies to sell Euro-II diesel in their stations.
IPPCA said making it mandatory would entail significant investments in putting the necessary infrastructure (storage tanks, dispensing pumps and pipes).
“We cannot be forced to make significant investments or a temporary stop-gap measure for a problem that they created by imposing higher excise taxes across all fuel products,” IPPCA said.
IPPCA earlier suggested the relaxation of the implementing rules and regulations stipulated under Republic Act 9637 or the Biofuels Act of 2006, which require oil companies to buy biofuels from local manufacturers notwithstanding the huge difference between local and imported biofuels, particularly ethanol.
“With the suspension of the prescribed biofuels blend on gasoline and diesel, motorists could expect a P2 per liter and P1.80 per liter price reduction on the pump price of gasoline and diesel, respectively,” IPPCA said.
Industry sources, however, said the impact on diesel pump price is not P1.80 for B2 but only P0.30 based in today’s market prices
IPPCA said that it believes that suspending the prescribed biofuel blend on fuel products would be more effective in bringing down the local fuel prices, instead of reintroducing Euro-II diesel that might not be feasible due to logistical concerns and minimal price reductions.
IPPCA pointed out that there is no much difference between the price of Euro-II and Euro-IV diesel as domestic and international refineries have upgraded and shifted their production to Euro-IV and even Euro-V compliant diesel products, which made Euro-II diesel even less available.
IPPCA said the reintroduction of Euro-II is a setback to the Government and industry stakeholders’ for cleaner air. It added that going back to Euro-II means reverting to fuel with 10 times more sulfur at 500 parts per million (ppm) as against the much cleaner diesel that is 90 percent less sulfur with only 50 ppm.
IPPCA added that offering Euro-II is a logistical nightmare for oil companies, as it would require additional investments for the installation of underground tanks at the retail outlets since Euro-II diesel could not be commingled with Euro-IV diesel.
“The directive also undermines the President Rodrigo R. Duterte’s directive banning smoking in public places to protect people from the ill effects of smoking and second-hand smoke. Now the DOE issued a department order that reverses the Clean Air Act of 1999–which is intended to protect Filipinos from the ill effects of polluted air,” IPPCA said.