DOE allows interim Euro II fuel use

The Department of Energy has issued Department Circular No. DC2026-03-0010, authorizing the temporary and controlled introduction of Euro II/2 petroleum products for selected transport and industrial uses as a contingency measure to help safeguard the country’s fuel supply amid continued volatility in global oil markets.

The DOE said the circular was issued in response to developments in the Middle East, which continue to strain global petroleum markets and raise supply concerns for fuel-importing economies such as the Philippines.

The department said the measure is intended to help maintain a continuous, adequate and accessible fuel supply while allowing limited flexibility for sectors that may be affected.

The department emphasized that the authority is interim, narrowly targeted and strictly regulated. It does not replace the country’s Euro IV fuel standards, which remain in force under existing laws and regulations, but serves as a targeted response to external risks affecting specific sectors.

“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.”

Under the circular, the interim use of Euro II/2 fuels is limited to in-use vehicle models from 2015 and earlier, traditional jeepneys, industrial applications such as powerplants and generators, and the marine and shipping industry.

To prevent misuse and preserve product integrity, downstream oil industry participants are required to maintain full segregation of Euro II/2 and Euro IV/4 fuels across storage, transport and retail systems.

Participants intending to offer Euro II/2 fuels must also notify the DOE through the Oil Industry Management Bureau and identify the retail outlets where such products will be made available.

The DOE said compliance will be enforced through random product sampling and testing across downstream oil facilities. It warned that fuel adulteration, non-compliance with prescribed quality specifications and other violations will be subject to penalties under existing laws, rules and regulations.

To protect consumers, the circular also requires the posting of clear and prominent advisories at fuel stations and other retail outlets offering Euro II/2 products. These advisories must state that the fuel carries Euro II specifications and that consumers must verify vehicle compatibility before use.

The measure was adopted following consultations with the oil and automotive industries from March 16 to 18, 2026, which the DOE said were meant to ensure that the policy is technically feasible and operationally manageable.

The DOE said it will continue to monitor global market developments closely and implement further measures, when warranted, to help protect fuel supply, preserve market stability and safeguard the public interest.