The Department of Energy (DoE) has authorized the temporary and controlled use of lower-grade petroleum products as a contingency measure to ensure fuel supply amid volatility in global oil markets.
Under Department Circular No. DC2026-03-0010, the DoE allowed the limited introduction of Euro II/2 fuels for selected transport and industrial uses, stressing that the measure is interim, targeted, and strictly regulated.
The policy was issued in response to developments in the Middle East that continue to strain global petroleum markets, with the DoE aiming to maintain a continuous, adequate, and accessible fuel supply.
“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,” Energy Secretary Sharon S. Garin said.
She added that the interim authority is subject to strict quality controls, clear notification requirements, and consumer protection measures to safeguard public interest.
The DoE clarified that the measure does not replace the country’s Euro IV fuel standards, which remain in force, but instead provides flexibility for sectors affected by external risks.
The use of Euro II fuels will be limited to vehicle models from 2015 and earlier, traditional jeepneys, industrial applications such as power plants and generators, and the marine and shipping sector.
To prevent misuse, oil industry participants are required to keep Euro II and Euro IV fuels segregated across storage, transport, and retail systems, and must notify the DoE of outlets offering the lower-grade fuel.
The agency said compliance will be monitored through random product sampling and testing, warning that violations such as fuel adulteration and non-compliance with quality standards will be penalized under existing laws.
Fuel stations offering Euro II products are also required to post clear advisories indicating fuel specifications and reminding consumers to check vehicle compatibility before use.
The measure was adopted following consultations with stakeholders in the oil and automotive industries from March 16 to 18 to ensure its feasibility and operational readiness.
The DoE said it will continue to monitor global developments and implement necessary measures to protect fuel supply, market stability, and public interest.