• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 4 mins U.S. Presidential Elections Status - Electoral Votes
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 28 mins Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 1 day Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 3 hours Will Liquid Metal Batteries Become the Standard for Large Batteries?
  • 2 days Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land

The Philippines Fight On Inflation: Sell Dirtier, Cheaper Oil

The Philippines is trying to curb its inflation running at five-year highs by ordering the companies to make available for sale cheaper but dirtier fuel, backtracking on a ban on such dirty fuels introduced two years ago and aimed at improving air quality.

The Philippines’ Energy Secretary Alfonso Cusi is taking steps to address slowing economic growth and high commodity prices by telling companies to sell low-cost fuels, and the government-owned Philippine National Oil Company-Exploration Corporation (PNOC-EC) to import low-priced fuel, the energy ministry says.

“For the purpose of reducing the impact of rising petroleum prices in the world market, all industry players are hereby directed to provide at the retail level Euro-II compliant automotive diesel oil as a fuel option for the transport and industrial customers,” says the order.

The Philippines switched to Euro-IV compliant fuels in January 2016, replacing the Euro-II standard, which allowed for much higher sulfur content in diesel.

Euro-IV compliant fuels have sulfur content of 50 parts per million (ppm), compared to 500 ppm for Euro-II fuels.

The energy ministry’s plan, however, now needs to be approved by the environment department.

Related: U.S. Drillers Add Double Digit Oil, Gas Rigs

“We’re studying it right now, giving consideration to their plan to cushion inflation. We’re also looking at the implications for emissions,” Jonas Leones, Undersecretary at the Environment and Natural Resources department, told Reuters on Friday.

On Thursday, the Philippines’s central bank raised again the key interest rate, by 50 basis points to 4 percent—the third such increase this year following rate hikes in May and in June. The August rate decision was widely expected, with all 19 analysts polled by Reuters forecasting a rate hike. Inflation in the Philippines jumped to an annual rate of 5.7 percent in July, up from 5.2 percent in June. Economic growth, on the other hand, slowed down to 6.0 percent in the second quarter—nearly a three-year-low and below analyst expectations of 6.7-percent growth.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News