By Juzel L. Danganan
MANILA, Apr 9 (PNA) — Department of Energy (DOE) Undersecretary Zenaida Monsada sees hurdles in implementing the Euro 4 standard for petroleum products nationwide by July 2015, saying oil companies are gearing up for the initial schedule in January 2016.
”The Department of Natural Resources (DENR) issued an administrative order indicating emission standards and they want to advance the Euro 4 fuel. The industry target based on an earlier DENR administrative order relative to the ASEAN economic integration, where Euro 4 fuels will be available nationwide on January 1, 2016,” Monsada told reporters.
Monsada stressed that some oil companies currently have Euro 2 standard, which has a sulfur level of 500 parts per million, far from the Euro 4 standard that has 50 parts per million.
She added that the DENR wanted to implement the Euro 4 earlier to lower carbon emissions.
The DOE Undersecretary noted the DOE is still awaiting the response of the oil companies with the fast-tracked implementation including their concerns, adding they have a deadline to submit a response this week.
But, she warned a nationwide implementation is quite impossible in July 2015.
Monsada identified the hurdles for the paced implementation, citing refineries were scheduled to have Euro 4 standard commercial production by January 1 and importers had set their shipment for January 1 as well.
She mentioned that Petron had not given an update on its refinery, while Shell was scheduled to add the new Euro 4 products to their stations nationwide.
The technical problem, according to Monsada, is oil companies need to dilute the Euro 4 fuel in their existing Euro 2 fuels.
Euro 4 importers are also in talks with their foreign suppliers to re-schedule their shipments earlier.
She clearified that the DOE will not stop them from adding Euro 4 products to their stations earlier, suggesting that some gasoline stations or those in key cities could have it first.
However, the DOE does not have an estimate yet on how it will increase fuel prices.
The DOE will release a circular this month for the implementation of the Euro 4 standard. (PNA)