1. Fuel Quality Development in the PhilippinesBy
Zenaida Y. Monsada
Director, Oil Industry Management Bureau
Department of Energy
ACFA/RP DOE : Vehicle Fuel Quality Workshop
Petron Mega Plaza, Makati City, Metro Manila
August 22, 2006

2. Fuel Quality Development
in the Philippines
OUTLINE
DOE
Fuel Quality
Conventional Fuels
Alternative Fuels
Initiatives
Issues and Concerns

3. Philippine DOE

4. Philippine DOE Mission Statement: We at the Department of Energy,
in partnership w/ our stakeholders,
shall improve the quality of life of the Filipino,
by formulating and implementing policies and programs to ensure sustainable, stable, secure, sufficient, accessible and reasonably-priced energy.
Oil Deregulation Law
`to ensure a truly competitive market under a regime of fair prices, adequate and continuous supply of environmentally-clean and high quality petroleum products`

5. DOE Role OIMB Mandate Monitoring (RA 8479)
 Fuel quality/quantity, refining/marketing process,
inventory, price
Additives Registration (RA 8479 / RA 8749)
Fuel Quality Standard Setting (RA 8749)
Petroleum Facilities Standard Setting (MOA with BPS)
Regulate as necessary (RA7638)

6. DOE Role – Fuel Quality Standards Setting
Standard Development/Review
Technical Committee (Fuels)
BPS TC 12 – Pre Clean Air Act
“Technical Committee on Petroleum Products & Lubricantss”
DOE-TCPPA by virtue of the Philippine Clean Air Act
“Technical Committee on Petroleum Products & Additives (TCPPA)”
Chairs : DOE and DENR
Members :
Government : DOE, DENR, BPS-DTI, ITDI-DOST
Fuel Sector : Petron, Caltex, Shell, IPPCA
Engine Suppliers/Manufacturers :
CAMPI, MMDA, MDPPA
Consumer Sector / NGO :
FilCar Foundation, AWMA
Academe : UP-NCTS, AIPSI

7. DOE Role – Fuels and Vehicle Emissions
DOTC / LTO / MMDA/DTI
DENR

8. Fuel Quality

9. CAA Requirements – Fuel Specs
Aromatics % max Jan. 1, 2000
Benzene % max Jan. 1, 2000
AKI min Jan. 1, 2001
RVP psi max Jan. 1, 2001
Aromatics % max Jan. 1, 2003
Benzene % max Jan. 1, 2003
Unleaded Gasoline
Automotive Diesel
Sulfur % max Jan. 1, 2001
Cetane No./Index min Jan. 1, 2001
Sulfur % max Jan. 1, 2004
Industrial Diesel
Sulfur % max Jan. 1, 2001

10. Historical Fuel Quality Specs –Gasoline CAA REQUIREMENTS FUEL SPECS.
PROPERTY
CAA REQUIREMENTS FUEL SPECS.
Post CAA Fuel Specs
1990
1993
1994
1998
2000
2001*
2003
2005
Hydrocarbons:
Alcohols (C2 to C4), % vol., max. 10
10**
Aromatics, % vol., max. 55 45 35
Benzene, % vol., max. 5 4 2
Ethers (e.g. MTBE), % vol., max.
Lead Content, g/L, max.
0.84
0.15
0.15/0.013
0.013
0.005
Octane rating, min.
Research Octane Number (RON)
81/93
81/87/93/95
81/93/95
Motor Octane Number (MON)
Report
Anti-Knock Index (AKI)
87.5
Vapor 37.80C, kPa, max. 85
85/80
85/62
Sulfur, % mass, max.
0.20
0.10
0.05
* multi-grade gasoline
** Ethanol

11. Historical Fuel Quality Specs – Diesel

12. Fuel Quality Standards Development Conventional Fuels
CAA Accomplishment
PNS 1131:2000 for Unleaded Gasoline (ULG) for 2000 specs
PNS 20:2000 for Diesel Oils for 2001 specs
PNS 1131:2001 (Multigrade ULG)
PNS 1131:2002/DOE 001:2002 for ULG for 2003 specs
PNS/DOE QS 004:2003 for Diesel Oils for 2004 specs
Post-CAA
PNS/DOE QS 001:2005 for Unleaded Motor Gasoline Specs
2. PNS/DOE QS 006:2005 for Fuel Oil (Bunker) Specs

13. Alternative Fuels/ Fuel Blends CocoMethyl Ester Fuel Ethanol
CNG/Natural Gas
Bio-fuels:
CocoMethyl Ester Fuel Ethanol
Auto Gas/LPG
Wind Solar Electric
Hydrogen Fuel Cells
Water-based
Fuel Blends Hybrids Dual

14. Fuel Quality Standards Development Alternative Fuels
COMPLETED
PNS 2020:2003 – 100% Coco-methyl ester (B100)
PNS/DOE QS 003:2003 – 2-T Lubricating Oils, considers agricultural feedstock such as CME
PNS/DOE QS 005:2005 – Auto-LPG
PNS/DOE QS 007:2005 – Anhydrous Bioethanol/ Fuel Bioethanol
ON-GOING
DPNS/DOE QS 008:2006 – E-Gasoline (E10)
DPNS/DOE QS 009:2006 – B1 (1% CME-diesel blend)
DPNS/DOE QS 010:2006 – Jatropha

15. Initiatives

16. Cleaner Fuels Initiatives
FUEL QUALITY
& EMISSIONS IMPROVEMENT
Review/Formulate Standards
Conventional Fuels– Gasoline/Diesel
Alternative Fuels and Blends
Coco-Methyl Ester, CNG, LPG
Institutionalize Work Groups
Standards Division
Alternative Fuels (Transport) Division
Petroleum Testing Laboratory
Monitor Quality, Quantity, Price
Review/Propose Tax/Incentives/MBI
Register Additives
IEC: Road Transport Patrol, AUV Eff
Conduct/Cooperate Studies/Pilot Run
Gas Station Training & Loan Fund
Multi-lateral
bodies: ADB,
WB, USAID,etc.
Governmental Functionalities:
DOE, DTI, BPS, DENR, EMB,
DOF, BIR, BOC, TC, DOST, etc.
Others:
Industry – Oil/Car
NGO’s, Academe

17. Fuel Quality Improvement Program
GOVERNMENT THRUST
Continuous improvement of fuel quality standards
Enhanced enforcement of standards/monitoring of compliance
Harmonization of fuel standards – ASEAN AF
VEHICLE INDUSTRY PROPOSAL
Euro 2 – 2005
Euro 4 – ?
Promotion of alternative fuels

18. Plans – Quality Regulation
Standards review/formulation
Gasoline
Sulfur content
Phase-out of AVSR and other deposits forming additives
Phase in of deposit control additives
Diesel
Distillation
Enhanced Standards Enforcement/ Compliance Monitoring
Acquisition of Portable (on-site) testing equipt
Partnership with private sector on monitoring and enforcement
Enhancement of adjudication capability

19. Harmonization of Standards
Fuel Quality
Conventional
Alternative fuels
Facilities
Gasoline stations
LPG vehicles, parts/ conversion kits
Terminals
Codes of Practice
LPG Vehicle Conversion
Retail Operation
Bulk Storage, Handling & Distribution

20. Alternative Fuels – Biofuels
TYPES:
Biodiesel
CME
1% CME-diesel blend
Other biomass sources
Bioethanol
Anhydrous Bioethanol (pure ethanol / denatured ethanol)
E-Gasoline (10% bioethanol-gasoline blend)
INITIATIVES:
Executive Issuances
Private Sector Initiatives – Voluntary Introduction
Legislation

21. Alternative Fuels – Biofuels
Private Sectors Intiatives
Biodiesel:
CME
Manufactures
- Chemrez and Senbel
Dealers/retailers
Flying V
Seaoil
Eastern
E-Gasoline:
Seaoil (Nationwide)
Flying V (Luzon)
Shell (M. M)
Pre-blended 1% CME (CB1) outlets
Flying V
Unioil
FilOil
USA 88

22. Alternative Fuels – Others
Natural Gas – vice diesel
Buses
LPG – vice gasoline
Taxis
INITIATIVES:
Executive Issuances
Private Sector Initiatives – Voluntary Introduction
Legislation

23. Issues and Concerns

24. Fuel Quality Improvement Issues/Constraints
PRICE
Higher quality means higher price
Present higher price levels in the international market
VAT
Price of biofuels at par with conventional fuels?
SUPPLY AVAILABILITY
Insufficient capacity of local refineries to meet product specs (>50% dependence on finished product importation)
Tight international refinery capacity for good quality products
INVESTMENT REQUIREMENT AND CLIMATE
Local refineries need upgrading/capacity expansion
Regional/global decision of stakeholders
Low refining margins
Not so competitive local business climate

25. Fuel Quality Improvement Issues/Constraints
COMPATIBILITY OF FUEL WITH VEHICLE
Present vehicle fleet vs. age/condition
Availability of compatible vehicles
FUEL QUALITY VS. EMISSION STANDARDS
Clear relationship between fuel quality and emissions standards
MONITORING
Target vs. actual improvements in air quality
Improvements in water/health… quality
Side effects of measures implemented (health/ economy/air quality/other pollutants

26. Fuel Quality – Just One of the Factors Contributing to Pollution
EMISSION
FUEL QUALITY
ENGINE DESIGN
VEHICLE USE
ENGINE MAINTENANCE
TRAFFIC MANAGEMENT

27. THANK YOU