OIL companies said they are ready to comply with a government directive to sell Euro 4-compliant fuels, a cleaner form of fuel, that should meet a stricter emission standard to be implemented in July.
But oil company officials said they will ask the government to stick to its original plan to implement the new standard in January 2016.
“There is no major problem. It is just a matter of timing, changing a supply chain and making it happen,” said Peter Morris, Chevron Philippines Inc. country chairman.
Euro 4-compliant fuels are considered cleaner than the current Euro 2 standard being sold in the local market since 2008. The new standard was expected to have a major impact on local refineries.
The Department of Environment and Natural Resources have moved the implementation of the new standard to July. No explanations were given.
Morris said Chevron imports its supply and it holds about three months worth of stocks “so it takes us a couple of months if we need to replenish our supply chain.”
“We are in favor of the January implementation because that’s what the industry has been planning for,” he said.
PTT Philippines President and Chief Executive Officer Sukanya Seriyothin said their refinery in Thailand has already been producing Euro 4 compliant products.
“It’s not a problem for us,” said Seriyothin when asked on the readiness of PTT for the early implementation of Euro 4 emission standard.
She said PTT would import about 200,000 barrels per month of Euro 4 from Thailand.
“Our refinery in Thailand already use it for so long. We’ll bring the finished product in Subic. We’ll import mostly about 200,000 barrels per month of Euro 4,” she said.
Energy Secretary Carlos Jericho L. Petilla said many oil firms use Euro 4 except for local refineries and said he could not give any explanation why DENR decided to implement stricter emission standards starting July.
“The original is actually 2016 and I don’t know why they will implement it earlier,” Petilla told reporters.