The Department of Energy (DOE) has rolled out a temporary measure allowing the controlled use of older, higher-sulfur fuel for select sectors, as global oil supply risks persist due to tensions in the Middle East.
Under Department Circular No. DC2026-03-0010, the DOE authorized the limited use of Euro II petroleum products — a less stringent fuel standard compared to the country’s current Euro IV requirement — as a contingency measure to help maintain fuel availability.
In simple terms, Euro II fuel is an older, “dirtier” type of fuel with higher sulfur content, which can lead to more pollution. By contrast, Euro IV fuel — the current standard in the Philippines — is significantly cleaner and designed for modern engines with stricter emission controls.
The DOE clarified that the policy does not replace the existing Euro IV standard, but serves as a temporary fallback to ensure there is enough fuel supply, especially for sectors that can still safely use the older type.
“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,” said Energy Secretary Sharon S. Garin.
“This interim authority is subject to strict quality controls, clear notification requirements, and appropriate consumer protection measures. Our objective is to uphold fuel supply security while remaining guided by safety, regulatory discipline, and the broader public interest,” she added.
The use of Euro II fuel will be limited to older vehicles (2015 models and earlier), traditional jeepneys, power generators, industrial users, and marine transport, where compatibility is less of an issue.
The move comes as global oil markets remain under strain, raising concerns about supply disruptions and price spikes. By allowing a temporary mix of fuel standards, the government aims to give suppliers more flexibility in sourcing fuel.
To prevent abuse, oil companies are required to keep Euro II and Euro IV fuels separate in storage and distribution, and must notify the DOE where the lower-grade fuel will be sold.
Pumps offering Euro II fuel must also clearly inform consumers, who are advised to check if their vehicles can safely use it.
The DOE warned that violations, including fuel adulteration or failure to meet quality standards, will face penalties under existing laws.
The policy was crafted after consultations with the oil and automotive industries, with the DOE emphasizing that it will remain in place only as long as necessary.
Ultimately, the agency said the goal is straightforward: ensure Filipinos have access to fuel even during global disruptions, while keeping safeguards in place to protect consumers and the environment.