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Adopted: 08 June 2015
Date Filed: 30 June 2015
WHEREAS, Republic Act No. 7638, otherwise known as “An Act Creating the Department of Energy (DOE)”, tasks the DOE to formulate rules and regulations to guide the operations of both government and private entities involved in energy resource supply and distribution;

WHEREAS, Republic Act No. 8749 otherwise known as the “Philippine Clean Air Act of 1999”, mandates the use of environmentally clean fuels which meet specified emission standards and directs the DOE, together with the Department of Environment and Natural Resources (DENR), Bureau of Product Standards (BPS), and the Department of Science and Technology (DOST) and other stakeholders, to set specifications for all types of fuel and fuel-related products and improve fuel composition;

WHEREAS, in accordance with the above mandate, the DOE has developed and subsequently promulgated by BPS the PNS/DOE QS 008:2012 and PNS/DOE QS 004:2012 as the current standard specifications for gasoline and diesel oil respectively, and these already include Euro 4/IV-Philippine specifications for both fuel types;

WHEREAS, there is a regional/global thrust towards harmonization of fuel quality standard specifications, vehicle technology and emission standards with due regard to the environment, vehicle performance, health and safety and for easier global/international trade;

WHEREAS, the DENR has issued Administrative Order No. 2010-23 which provides that starting 01 January 2016, all new passenger and light duty motor vehicle types to be introduced into the Philippine market shall comply with Euro 4/IV limits/emission standards subject to Euro 4/IV-PH fuels availability. Subsequently, however, the DENR issued DAO No. 2015-04 which reiterates the same provision but which also prescribed emission standards for compliance by 01 July 2015 for certain types of vehicles loaded with Euro 4/IV fuels, thus further provides of ensuring the availability of such fuel in the market on same timeline; and

WHEREAS, the local oil refineries, however, have already put up the necessary investment for the upgrading of their facilities aimed at beginning production of Euro 4/IV-PH fuels by 2016, which is the same timeline set by the other oil companies in their importation program and dilution/roll-on preparation in their depots and retail outlets.

NOW, THEREFORE, in consideration of all the foregoing, the DOE hereby requires all oil industry participants engaged in the retailing of petroleum products to comply with the following:

Section 1. Mandatory Implementation. Starting 01 January 2016, only gasoline and diesel fuels complying with the standard specifications for Euro 4/IV-PH fuels prescribed in PNS/DOE QS 008:2012 and PNS/DOE QS 004:2012, respectively shall be allowed for sale at the bulk and retail levels in the country: Provided, That while early introduction is desireable, proper labelling pursuant to existing guidelines shall be observed.

Section 2. Quality Monitoring. The DOE, through the OIMB and the counterpart Field Offices, shall, among others, conduct random quality and quantity sampling and testing of gasoline and diesel obtained from the facilities of the oil companies to ensure compliance with Section 1 of this Circular: Provided further, That to comply with the PNS shall constitute the offense of Adulteration as defined and punishable under existing circulars.

Section 3. Information Campaign. The oil companies shall ensure that their retail stations personnel/staff are fully aware and conversant of the products that they sell/dispensed at the retail stations in order to inform their customers of the new product specifications.

Section 4. Reporting Requirements. Oil industry participants shall submit the Reportorial Requirements pursuant to the “Downstream Oil Industry Deregulation Act of 1998”, and its implementing rules and regulations: Provided, That failure to submit the reportorial requirements shall be deemed as a prohibited act.

Section 5. Penalties/Sanctions. Any person who fails to comply with the provisions of this Department Circular shall be subject to appropriate sanctions imposed under applicable laws and implementing rules and regulations.

Section 6. Repealing Clause. All circulars and issuances not consistent with this Circular shall be modified and repealed accordingly.

Section 7. Effectivity and Publication. This Circular shall be effective upon its publication in two (2) newspapers of general circulation and shall remain in effect until revoked.

Issued at Energy Center, Bonifacio Global City, Taguig City.

(SGD) CARLOS JERICHO L. PETILLA
Secretary