The Department of Energy (DOE) has authorized the temporary importation and use of Euro 2 petroleum products in the Philippines to safeguard fuel supply amid global oil market volatility. The measure, announced on March 22, 2026, allows limited use of lower-grade fuels in older vehicles, traditional jeepneys, industrial facilities, and the shipping sector.

The DOE issued Department Circular No. DC2026-03-0010, which permits the controlled introduction of Euro 2 fuels, a step down from the country’s current Euro 4 standard. Energy Secretary Sharon Garin explained that the move is a “prudent and temporary measure” designed to ensure adequate and accessible fuel supply during the ongoing Middle East conflict that has disrupted petroleum flows worldwide.

Under the circular, Euro 2 fuels may be used in in-use vehicle models from 2015 and earlier, traditional jeepneys, industrial applications such as power plants and generators, and the marine and shipping industry. The DOE emphasized that the policy is temporary and tightly regulated, with monitoring systems in place to prevent misuse.

The Philippines has maintained Euro 4 as its official fuel standard since 2016, in line with efforts to reduce harmful emissions and improve air quality. Euro 2 fuels, by contrast, have higher sulfur content and are considered more polluting. Environmental groups have expressed concern that the temporary rollback could worsen air quality, but the DOE stressed that it is a contingency measure only, not a permanent policy shift.

The decision comes as global oil prices continue to surge due to escalating tensions in the Middle East, particularly the US-Israel conflict with Iran. Supply disruptions have raised fears of shortages in the Philippines, which imports nearly all of its fuel requirements. By allowing Euro 2 fuels, the DOE aims to provide flexibility for sectors most vulnerable to supply constraints while maintaining overall energy security.

For consumers, the immediate impact may be limited, as Euro 2 fuels will not be widely available at retail stations. Instead, they will be directed toward specific industries and older vehicle fleets. However, the measure underscores the government’s concern over fuel stability and its willingness to adopt emergency policies to cushion the economy from global shocks.

In the coming weeks, the DOE is expected to release further guidelines on monitoring and compliance, ensuring that the temporary use of Euro 2 fuels does not undermine long-term environmental goals. For now, the policy reflects the Philippines’ balancing act between energy security and environmental protection in the face of global uncertainty.