The Department of Energy’s move to reintroduce Euro 2 fuels in a bit to curb the rising gas prices has met resistance from one unlikely source: the oil companies.

In a report published by the Business Mirror, the Independent Philippine Petroleum Companies Association (IPPCA) made up of players such as Eastern Petroleum, Unioil, Seaoil Flying V, City Oil, and others, is reminding the DOE that a shift back to Euro 2 actually counters the Clean Air Act.

Oddly enough, for the DOE’s part, they say and we quote:

The DOE, for its part, said higher sulfur content does not necessarily mean Euro 2 is dirtier than Euro 4, which has a lower sulfur content. 

“It doesn’t follow the Euro 2 is more pollutant than Euro 4.… The sulfur is not part of the emission standard,” said DOE Undersecretary Felix William Fuentebella at a news conference on Tuesday afternoon.

Personally, we think the DOE doesn’t understand how chemistry works at all.

Let’s remind those working in the DOE that sulfur is a natural component in both gasoline and diesel fuels. Not only is it more harmful to a vehicle’s emission controls systems (that’s your SUV’s long-term durability and reliability right there, Mr. Fuentebella), but sulfur dioxide is responsible for the phenomenon we call acid rain. Plus, sulfur is a smog-forming pollutant that has been linked to respiratory diseases and air pollution.

Additionally, the report indicates that the savings from going from Euro 4 to Euro 2 isn’t much: P 0.28 to P 0.30 per liter of diesel. In comparison, if the government simply decides to stop/postpone the implementation of the TRAIN Law, that’s an immediate reduction of P 2.50 per liter.

As a counterproposal, the IPPCA proposes that the biofuels law be suspended instead. In a statement, IPPCA President Bong Suntay said:

“This will be more effective, particularly the 10-percent ethanol blend on gasoline. With the Euro 4 standard already in effect, which is 10 times cleaner than Euro 2 standard, the use of ethanol and even biodiesel is no longer needed in achieving cleaner emissions from both gasoline and diesel,” Suntay said. 

Recent spikes and scarcity of table sugar can also be traced to the use of the same raw materials. “Sugar cane in ethanol production, which is given higher priority due to its mandatory blending to 10 percent of all gasoline products, commanding higher prices, but more expensive by as much as P 4 for locally produced ethanol versus price of imported gasoline,” he added. 

Further, IPPCA said there is not much difference in international price between Euro 2 and Euro 4 diesel as refineries have also upgraded and shifted production to Euro 4 and 5 diesel.

Still, the DOE doesn’t want to hear any of this. In fact, the DOE expects all oil firms to comply with the new memorandum. The DOE further added that at least one major player has committed to abide by the DOE order.

Source: Business Mirror