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Philippines shifts to cleaner fuel standards starting July 1

Wed, 25th Mar 2015 08:20

MANILA, March 25 (Reuters) - The Philippines on Wednesdayordered oil companies, including Petron Corp and localunits of Shell and Chevron, to sell only EuroIV-compliant fuels by July 1 in a drive to boost air quality inthe Southeast Asian country.

While there have been improvements in the capital Manila,air quality in the city of 12 million people still remains belowinternational standards, Environment and Natural ResourcesSecretary Ramon Paje said.

The directive to shift from Euro II fuel norm also coverscar manufacturers who can only bring in vehicles equipped withEuro IV engines starting Jan. 1, 2016, the minsiter said.

"We are imposing stricter emission standards for allvehicles to be used or introduced in the local market effectiveJuly this year," he said at a news briefing.

The sulfur content of the Euro IV fuel is up to 50 parts permillion (ppm), way below the 500 ppm limit for Euro II fuelstandards that the Philippines adopted in 2008, Paje said.

"Low sulfur fuels will lead to reduced emissions ofparticulate matter that, along with other pollutants, canpenetrate deeply into sensitive parts of the lungs and canworsen existing respiratory and heart diseases," he said.

Paje said he had advised the oil companies to just exporttheir remaining Euro II fuels before July 1.

The measure is a key step toward the country's goal to meetinternational air quality standards by 2016, he said.

The Southeast Asian nation is already many years behindother countries in taking action to improve air quality. Pajesaid some countries in Europe, in fact, have shifted to higherfuel standards.

The so-called Big 3 in the Philippines -- Petron, Shell andChevron -- and their smaller rivals are supportive of the policyshift, he said.

Some car manufacturers, however, are seeking more time toprepare for the transition to new engine standards. "There isresistance up to now but we are not giving in," Paje said. (Reporting by Erik dela Cruz; Editing by Simon Cameron-Moore)

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