[sustran] Manila to shift to unleaded gas

[Craig Townsend]

>From the Manila Times Internet Edition, 19 January 2000

Buy gas converters for those old cars 

LEADED gasoline will be completely phased out from all Metro Manila service
stations starting April this year. 

This emerged following the signing of a memorandum of agreement yesterday
by Energy Secretary Mario Tiaoqui and  officials of Petron Corp., Caltex
Philippines, Inc., Pilipinas Shell Petroleum Corp., Flying V, Total
Petroleum Philippines Corp., Subic Bay Distribution Inc., Eastern Petroleum
Corp. and Unioil Corp. 

Tiaoqui said Metro Manila’s complete shift to unleaded gasoline is a full
nine months ahead of the national mandatory phaseout of leaded gasoline by
January 2001, as mandated by Republic Act 8479 or the Philippine Clean Air
Act of 1999. 

He said the early phaseout of leaded gasoline would go a long way in
minimizing air pollution in the metropolis. 

“Definitely unleaded gasoline is a more environment-friendly fuel. We are
glad, therefore, that the concerted move for an early phaseout of leaded
gasoline is being actively supported by the three oil major companies and
the new industry players,” Tiaoqui said. 

Officials from the old and new players in the oil industry said they would
need at least two months to complete the full transition to unleaded
gasoline of all Metro Manila service stations. 

To implement the move, the oil firms also need to invest $2 billion to
refine and distribute oil products that will conform to the requirements of
the Clean Air Act. 

According to Tiaoqui, the DoE and the oil industry aim to make the country
fully unleaded within the year. 

Unleaded gasoline was first introduced in the market in February 1994.
However, motorists were initially hesitant to use the product due, among
others, to an erroneous perception that it had less power. 

To overcome this bias, Congress reduced the price of unleaded gasoline by
lowering its excise tax by P1 per liter to P4.35 a liter. Since then, usage
of unleaded gasoline has been on the rise. Currently, the product accounts
for at least 45 percent of total gasoline sales. 

Meanwhile, Tiaoqui also said consumers can expect further reductions in the
sulfur contents of diesel fuel from the present level of 0.5 weight percent
to 0.2 in 2001 and further to 0.05 in 2003. 

He said the department would be conducting regular fuel quality tests on
gasoline sales to monitor compliance with the agreement on leaded gasoline
phaseout. 
________________________________________________
Craig Townsend
Institute for Sustainability & Technology Policy
Murdoch University
South Street, Murdoch
Perth, Western Australia 6150

tel: (61 8) 9360 6293
fax: (61 8) 9360 6421
email: townsend at central.murdoch.edu.au