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a C 4
J) Republic of the Philippines
sy? DEPARTMENT OF ENERGY

DEPARTMENT CIRCULAR NO. _OCA0!9- O5- 900

IMPLEMENTING THE SPECIFICATIONS FOR PNS/DOE QS 004:2017 CME-BLENDED
AUTOMOTIVE DIESEL OIL AND PNS/DOE QS 013:2017 CME-BLENDED INDUSTRIAL
DIESEL OIL — SPECIFICATIONS

WHEREAS, there is a regional / global thrust towards harmonization of fuel quality standard
specifications, vehicle technology and emission standards with due regard to the
environment, vehicle performance, health and safety and for easier global / international
trade;

WHEREAS, Section 5 (k) of Republic Act No. 7638 otherwise known as the “Department of
Energy (DOE) Act of 1992,” empowers the DOE to promulgate necessary rules and
regulations to implement the objectives of the Act among which is the integration and
rationalization of the various programs of the Government towards self-sufficiency and
enhanced productivity in power and energy without sacrificing ecological concerns;

WHEREAS, Presidential Decree No. 1865 (PD No. 1865) prescribes penalties for shortselling
and adulteration of petroleum and petroleum products and other acts in the definition of
prohibited acts;

WHEREAS, Section 14 of Republic Act No. 8479 (R.A. 8479), otherwise known as the
“Downstream Oil Industry Deregulation Act of 1998” tasked the DOE, Bureau of Product
Standards (BPS) of the Department of Trade and Industry (DTI) , Department of Environment
and Natural Resources (DENR), Department of Science and Technology (DOST),
representatives of the fuel and automotive industries and the consumers to set the
specifications for all types of fuel and fuel-related products to improve fuel composition for
increased efficiency and reduced emission.

WHEREAS, Section 26 of Republic Act No. 8749 (R.A. 8749), otherwise known as the
“Philippine Clean Air Act of 1999” directs the DOE, together with the Department of
Environment and Natural Resources (DENR), Bureau of Product Standards (BPS), and the
Department of Science and Technology (DOST) and other stakeholders, to set specifications
for all types of fuel and fuel-related products and improve fuel composition;

WHEREAS, Section 5 of Republic Act No. 9367 (R.A. 9367), otherwise known as “Biofuels
Act of 2006” mandates that all liquid fuels for motors and engines sold in the Philippines shall

contain locally sourced biofuel component conforming to Philippine National Standards
(PNS);

WHEREAS, in accordance with the above mandate, the DOE-chaired by the TCPPA has
developed and subsequently promulgated by BPS on 18” of December 2017 the PNS/DOE
QS 004:2017 and PNS/DOE QS 013:2017 as the current separate standard specifications for
CME-blended automotive diesel oil and CME-blended industrial diesel oil, respectively, to
cancel / replace PNS/DOE QS 004:2012;

WHEREAS, Department Circular No. 2017-11-0011 provides the revised rules and
regulations governing the business of retailing liquid fuels;

WHEREAS, the Department of Environment and Natural resources (DENR) has issued
Department Administrative Order No. 2015-04 (DAO No. 2015-04) which provides that
starting 01 January 2016, all new vehicles to be used or introduced into the Philippine market
shall be equipped with Euro 4/IV engines and compliant with Euro 4/IV limits/emission
standards;

WHEREAS, Department Circular 2015-06-0004 provides that starting January 01, 2016, only
gasoline and diesel fuels complying with the standard specifications for Euro 4/IV-PH fuels
prescribed in PNS/DOE QS 008:2012 and PNS/DOE QS 004:2012, respectively, shall be
allowed for sale at the bulk and retail levels in the country;

Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila, Philippines
Tel No.: 840-2187 840-2155 840-2130 Fax: 840-2095 *Trunkline: 479-2900
Website: www.doe.gov.ph * E-mail: info@doe.gov.ph

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Department Circular N&.__C 2019 - 0S - 0006 C
Page 2 of 2

NOW, THEREFORE, in consideration of all the foregoing, the DOE hereby requires all
Downstream Oil Industry (DOI) participants engaged in the sale of petroleum products,
whether in bulk or in retail, to comply with the following:

Section 1. Standard Implementation. Aji automotive diesel oils and industrial diesel
oils sold in the country shall be in compliance with PNS/DOE QS 004:2017
CME-blended automotive diesel oil and PNS/DOE QS 013:2017 CME-
blended industrial diesel oil Specifications, respectively.

Section 2. Prohibited Acts. The following acts are prohibited and penalized:

a. Petroleum Fuel Product Adulteration — failure to meet the required
product specifications at the bulk plants/depots as prescribed by the
products standards is punishable under Section 4 of PD No. 1865 and
Biofuels Law, as applicable.

b. Adulteration — The possession and sale of Liquid Fuels at the retail
outlets that do not conform with quality standards pursuant to the PNS
and Biofuels Law shall be governed and sanctioned by the Act and its
Implementing Rules and Regulations under Rule VIII Section 29 of DC
2017-11-0011.

c. Sale and possession of biofuel and biofuel blends which fail to conform
with the PNS is punishable under Chapter VIIl Section 1 of Joint
Administrative Order No. 2008-1, Series of 2008, otherwise known as
“Guidelines Goveming the Biofuel Feedstocks Production, and Biofuels
and Biofuel Blends Production, Distribution and Sale under Republic Act
No. 9367”.

Section 3. Quality Monitoring. The DOE through the OIMB and the counterpart Field
Offices, shall, among others, conduct random quality and quantity sampling
and testing of diesel obtained from the downstream oil facilities to ensure
compliance with Section 1 of this Circular.

Section 4. Information Campaign. DO! participants shall ensure that their retail outlet
personnel are fully aware and conversant of the products that they
sell/dispense at the retail stations. Moreover, the oil companies are enjoined
to conduct Information, Education Campaign (IEC) to their customers,
especially on their new product brand name.

Section 5. Penalties / Sanctions. Any person who commits any prohibited acts under
Section 2 herein shall be subject to appropriate sanctions imposed under
applicable laws, rules and regulations.

Section 6. Repealing Clause. All circulars and issuances not consistent with this
Circular shall be modified and repealed accordingly.

Section 7. Effectivity and Publication. This circular shall be effective fifteen (15) days
following its complete publication in a newspaper of general circulation and
shall remain in effect until revoked. Copies therefore shall be filed with the
University of the Philippines Law Center — Office of the National
Administrative Register (UPLC-ONAR).

Issued at Energy Center, Bonifacio Global City, Taguig Cityon_ —‘“‘C:*SC*C*C~CS

LFONSO G. CUSI WW
Secretary
x Republic of the Philippines
# DEPARTMENT OF ENERGY |

wT MAY 45 2049