Implementing New Standard Specifications for Gasoline

September 19, 2013

DOE DEPARTMENT CIRCULAR NO. DC2013-09-0021

IMPLEMENTING NEW STANDARD SPECIFICATIONS FOR GASOLINE

WHEREAS, there is a regional/global thrust towards harmonizing fuel quality standard specifications 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, Section 26 of Republic Act No. 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; ADCEcI

WHEREAS, The Technical Committee on Petroleum and Products Additives (TCPPA) has completed the review of the existing standards for the various gasoline grades, resulting in the formulation of a new set of specifications; and

WHEREAS, the Bureau of Product Standards of the Department of Trade and Industry has promulgated the new standard specifications for gasoline as PNS/DOE QS 008:2012.

NOW, THEREFORE, in consideration of all the foregoing, the DOE hereby requires all oil industry participants engaged in the retailing of petroleum products to comply with the following:

SECTION 1. Standard Implementation. — All oil industry participants shall distribute and sell only E-gasoline fuels complying PNS/DOE QS 008:2012 E-Gasoline Fuel Specification in the country. The following specifications for gasoline shall apply:

• Regular grade — 91 RON, Minimum — green

• Premium grade — 95 RON, Minimum — red

• Premium Plus grade — 97 RON, Minimum — blue

SECTION 2. Pump Labeling. — All gasoline dispensing pumps in all retail outlets shall be labeled with any one of the three (3) prescribed octane stickers illustrated in Annex A and the E-gasoline sticker in Annex B. ETIcHa

2.1 Octane Sticker. The RON value in the sticker shall reflect only any of the three (3) minimum limits provided in Section 1 above. Stickers with entries not fully compliant with the prescribed format may be allowed in the interim: Provided, That all the following basic sticker specifications (entries in yellow background) are still observed:

• Gasoline grade

• Product field

• Minimum Octane Number of the gasoline grade

• The word "minimum" in reference to the octane number of the gasoline grade

2.2 E-gasoline sticker. The sticker shall indicate the phrase "This E-gasoline contains 10% Bioethanol."

2.3 Any other octane promotional tools as supplementary label may be allowed as long as they are distinctly different from that prescribe in Annex A (or they are not in the form of the prescribed octane sticker) and shall not contradict with the standard RON label.

SECTION 3. Product Branding/Price Display Board. — The use of the terms "unleaded", "lead-free" and other similar brand names in the labeling at the display boards, pumps and other marketing tools to the public shall no longer be allowed to avoid the impression that the Philippines still has leaded gasoline. SAEHaC

Further, the Price Display Board pursuant to section 8 (a) of Department Circular No. DC2003-11-010 with updated prices for each Liquid Petroleum Products sold in the Retail Outlet must still be observed.

SECTION 4. Information Campaign. — The oil companies shall ensure that their gasoline station 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 IEC to their customers, especially on their new product brand name and octane ratings.

SECTION 5. Reporting. — Oil industry participants shall submit the appropriate reportorial requirements pursuant to Republic Act No. 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998". Consistent with Section 3 of this Circular; the reports that shall be submitted to the DOE shall correspondingly reflect the new gasoline grades and shall not make use of the terms 'unleaded', 'lead-free' and similar names. Moreover, a list of the brand names for each gasoline grade that the oil company carries, as well as sample sticker for each product grade shall be submitted to the Oil Industry Management Bureau of the DOE within 30 days from the effectivity of this Circular.

SECTION 6. Penalties/Sanctions. — Any oil industry participant who fails to comply with the provisions of this Circular shall be subject to appropriate sanctions imposable under Republic Act No. 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998" its implementing rules and regulations as well as other related issuances: Provided, That oil industry participants are expected to comply with the new sticker design pursuant to this Circular not later than 01 January 2014.

SECTION 7. Separability Clause. — If any provision of this Circular is declared unconstitutional, the remainder of this Circular or the provisions not otherwise affected shall remain valid and subsisting.

SECTION 8. Repealing Clause. — Any department circular or issuance, contrary to or inconsistent with these Rules is hereby repealed, modified or amended accordingly. SaAcHE

SECTION 9. Effectivity. — This Circular shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.

Issued at the Energy Center, Rizal Drive, Bonifacio Global City, Taguig City.

(SGD.) CARLOS JERICHO L. PETILLASecretaryDepartment of Energy

ANNEX A

Octane Posting at the Pump

ANNEX B

Minimum Specification/Dimension for E-Gasoline Pump Labeling

• Prints are violet while borders are black with pantone yellow as background

• Font type is Arial Black with size 22 in two lines

LABEL PROTECTION:

All labels must be resistant to gasoline, alcohol, oil grease, solvent, detergents, and water and must be capable of withstanding extreme weather conditions so that all entries in the sticker are clearly readable at all times.

Published in The Philippine Star on September 22, 2013.