EXPLAINER: What is Euro II fuel and why is this 'dirtier' petrol back?

More than a decade after moving away from its use, the Philippines has allowed the limited importation and utilization of Euro II petroleum products as the country reels from the impact of the Middle East crisis.

The decision comes as global oil prices rise and supply conditions remain uncertain, even as Malacañang says there is no oil supply crisis in the country.

What is Euro II fuel?

Euro II is a fuel classification under European emission standards, which set limits on how much pollution vehicles can produce. 

It is an older standard that allows higher carbon emissions than Euro IV, the current fuel standard used nationwide.

The difference is most evident in sulfur content:

• Euro II: about 550 parts per million (ppm)
• Euro IV: about 50 ppm

Higher sulfur means more pollutants are released when fuel is burned.

Why is it called 'dirtier' fuel?

Euro II produces higher levels of harmful pollutants, including nitrogen oxides, hydrocarbons, carbon monoxide, and particulate matter.

These are linked to respiratory and heart diseases, as well as environmental damage such as air pollution and acid rain.

Government data show Euro IV fuel can be up to 10 times cleaner than Euro II.

Before the policy pivot, Euro II fuel was widely used in the Philippines. At the time, air quality in Metro Manila did not meet international standards. 

The shift to Euro IV was meant to reduce carbon emissions and improve public health.

This was implemented by virtue of a July 2015 order of the Department of Environment and Natural Resources (DENR) mandating petroleum companies operating in the Philippines to sell fuels that meet the Euro IV standard.

In 2018, the Department of Energy (DOE) suggested the return of Euro II fuels in the local market, also because of soaring petroleum prices.

However, the Department of Transportation (DOTr) opposed the move, citing health risks and economic losses due to increased pollution.

What's happening to oil prices now?

With global oil prices rising in recent weeks due to the Middle East conflict and concerns over oil supply routes, prices have hovered around the $100-per-barrel level, with spikes reported earlier in March. 

This has led to a series of local fuel price hikes, affecting pump prices across the country.

Despite this, officials say the issue is price volatility, not a shortage. Malacañang said the Philippines still has enough supply, with additional shipments being arranged.

The DOE said Tuesday the move was temporary and meant to give the country more flexibility.

It described the policy as a contingency measure to help ensure fuel remains available if global supply becomes tighter.

Energy Secretary Sharon Garin said the goal is to keep fuel "adequate and accessible," with safeguards in place.

Euro II fuel will be limited to specific sectors and machines:

• Vehicles from 2015 and earlier
• Traditional jeepneys
• Power plants 
• Generators
• Marine vessels

It will not replace Euro IV as the country's main fuel standard, according to the DOE. 

Euro II fuel is cheaper and more widely available, but it produces more pollution.

Its temporary return indicates a balancing act. The government is trying to manage rising global oil prices and potential supply risks, while keeping existing environmental standards in place. — With research and information from GMA Integrated News and GMA Integrated News Feed/ VDV, GMA Integrated News