The Market Monitor Minding the Nation's Business
Riza Lozada
Pilipinas Shell Petroleum Corp. (PSPC) expects to complete its P6.75-billion refinery upgrade this year to enable the facility to comply with the January 1, 2016, implementation of the Euro IV fuel specification reducing sulfur content in diesel.
Company officials said PSPC’s FuelSave gasoline and diesel, which its parent Royal Dutch Shell Plc makes available in 22 countries, is being promoted locally for fuel efficiency.
At the launching last Wednesday of the Shell Eco-Marathon Asia, Shell Country Chairman Ed Chua said its refinery in Tabangao, Batangas, will produce Shell FuelSave.
He noted that the job of Shell in the country is not only to “sell as much fuel as possible but to use this in the most efficient manner because fuel is not renewable.”
Shell fuel scientist Mae Ascan told The Market Monitor the refinery in Tabangao is undergoing upgrade to comply with its adoption of the Euro IV by 2016.
“As of now, the national standard for fuel specification of the Philippines is still Euro II and based on the mandate by January 1, 2016, all fuels are expected to comply with Euro IV. At this stage, to shift from Euro II to Euro IV, we need to upgrade our refinery and we are still on that stage and we believe that when the mandate comes, the time of implementation, we are confident that we will be ready,” Ascan said.
Earlier report from the Department of Energy said the Tabangao refinery upgrade was facing delay due to the stalled delivery of PSPC’s equipment as a result of the port congestion problem in Manila.
Shell officials will promote FuelSave in it hosting for the second year the world’s biggest fuel efficiency competition, Shell Eco-Marathon, which started in 1939 and was first held in the United States to challenge scientists in achieving the most miles per gallon from their vehicles.
Shell is producing diesel and gasoline in octane grades ranging from 91 to 97 rating.
The Shell FuelSave unleaded and the Shell FuelSave diesel are regular-priced fuels that last longer. They contain active ingredients and are designed to improve engine efficiency.
It will be tested during the Eco Marathon Asia to be held from February 26 to March 1, with participation from countries around Asia and the Middle East where student teams will compete in the design, building and use of the most energy efficient vehicles.
Chua said the Eco-Marathon Asia hosting in the country manifests Shell’s initiative to support FuelSave objective of reaching one million drivers around the world.
Chua said that out of 1,000 Filipino drivers aged 18 to 40, it was found out that 92 percent “see being fuel efficient as important but 75 percent admit” they are not familiar with the fuel type.
He said that this came from the recent Shell FuelSave Fact and Fiction Report, which was commissioned by Shell and conducted by independent research firm Edleman Berland in December 2014. It used an online questionnaire to 1,000 Filipino drivers aged 18 to 40.
In launching the Eco Marathon Asia, he said, “as partner we have been supporting this initiative. We are not only supporting this to promote fuel efficiency, we in Shell, our job, my colleague is not only to sell fuel as much as possible but for the people to use fuel in the most efficient manner. Fuel is not renewable.”
Chua said that using fuel in the most efficient way promotes sustainability.
The marathon event will be the best time for participating student teams from various countries to learn how to choose the right fuel and to practice correct habit in driving safely and promoting fuel efficiency.
Shell Vice President for Retail Lawrence Yam said the Eco Marathon Asia will highlight driving competition by using Shell FuelSave and will educate Filipino motorists how to become fuel-efficient.