QuestionsQuestions (DOE Department Circular No. DC2015-06-0004)
The DOE cited Republic Act No. 7638 (DOE Act) for DOE rulemaking authority, and Republic Act No. 8749 (Philippine Clean Air Act of 1999) for the requirement to use environmentally clean fuels and to set fuel specifications with DENR, BPS, DOST, and other stakeholders.
It referenced PNS/DOE QS 008:2012 for gasoline and PNS/DOE QS 004:2012 for diesel oil, noting that these already include the Euro 4/IV-Philippine specifications for both fuel types.
Starting January 1, 2016, only gasoline and diesel fuels complying with the Euro 4/IV-PH fuel specifications under PNS/DOE QS 008:2012 and PNS/DOE QS 004:2012, respectively, may be sold at bulk and retail levels in the country.
It states that while early introduction is desirable, proper labeling pursuant to existing guidelines must be observed.
No. After January 1, 2016, only fuels meeting the Euro 4/IV-PH PNS specifications may be sold at bulk and retail levels; non-compliance would violate Section 1 and expose the party to sanctions under Section 5.
The DOE (through the Oil Industry Management Bureau (OIMB) and counterpart Field Offices) will conduct random quality and quantity sampling and testing of gasoline and diesel obtained from oil company facilities to ensure compliance with Section 1.
It provides that non-compliance with the PNS will constitute the offense of “Adulteration,” as defined and punishable under existing circulars.
It indicates that inspections are not only based on complaints or targeted audits; DOE may randomly test quality and quantity from company facilities to verify compliance.
The DOE through the OIMB and the DOE’s counterpart Field Offices.
Oil companies must ensure that their retail station personnel/staff are fully aware and conversant with the new product specifications so they can properly inform customers.
They must submit reportorial requirements pursuant to the Downstream Oil Industry Deregulation Act of 1998 and its implementing rules and regulations.
Failure to submit is deemed a prohibited act.
It states that persons who fail to comply with the circular’s provisions will be subject to appropriate sanctions imposed under applicable laws and implementing rules and regulations, meaning penalties are not limited solely to the circular itself.
All circulars and issuances not consistent with the DOE circular are modified and repealed accordingly.
It becomes effective upon publication in two (2) newspapers of general circulation, and it remains in effect until revoked.
It notes DENR Administrative Order No. 2010-23 (Euro 4/IV compliance for new vehicle types subject to Euro 4/IV-PH fuel availability) and DENR DAO No. 2015-04 (reiterates with an earlier compliance requirement for certain vehicle types), and it aligns with refinery investment and planned Euro 4/IV-PH production by 2016.