Philippines eyes shift back to cheaper, dirtier fuel to tame inflation

Passengers ride in foot-powered trolleys along a railroad track in Manila, giving locals a cheap and non-pollutive alternative method of transport. (AFP / NOEL CELIS)
Updated 11 August 2018
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Philippines eyes shift back to cheaper, dirtier fuel to tame inflation

MANILA: The Philippines’ energy ministry has told oil companies to sell a cheaper but dirtier type of diesel oil to motorists to fight inflation, backing away from a two-year-old regulation that banned its use to improve air quality.
The energy department’s plan would need clearance from the environment department, which implemented Manila’s switch to cleaner Euro-IV compliant fuels from Euro-II in January 2016, a rule that covered both oil companies and car manufacturers. The department was evaluating the plan, an official said.
The Department of Energy late on Thursday directed that Euro-II compliant automotive diesel oil should be provided as a fuel option for transport and industrial retail customers “for the purpose of reducing the impact of rising petroleum prices in the world market.”
“We’re studying it right now, giving consideration to their plan to cushion inflation. We’re also looking at the implications for emissions,” Environment and Natural Resources Undersecretary Jonas Leones told Reuters on Friday.
Euro-IV fuels have sulfur content of 50 parts per million (ppm) versus 500 ppm for Euro-II fuels.
Petron Corp, the Philippines’ top refiner, was studying the impact of the energy department’s plan which it only received on Thursday night, a spokesman for the company said. Pilipinas Shell Petroleum Corp, the local unit of Royal Dutch Shell PLC, was checking into the matter, a spokeswoman said.
Philippine annual inflation climbed to its highest in more than five years at 5.7 percent in July, prompting the central bank to raise interest rates for a third time this year on Thursday.
Along with the switch back to Euro II-fuels, Energy Secretary Alfonso Cusi also ordered the government’s Philippine National Oil Company-Exploration Corp. to import “low-priced petroleum products, particularly diesel, to mitigate the impact of volatile oil prices.”


Vladimir Putin gets lavish welcome on visit to ally Serbia

Updated 21 min 12 sec ago
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Vladimir Putin gets lavish welcome on visit to ally Serbia

  • Church bells tolled, guns saluted and people waved Russian and Serbian flags on Putin’s route through the Serbian capital, Belgrade
  • Serbia has maintained close links with traditional Slavic ally Russia despite formally seeking European Union membership

BELGRADE, Serbia: Vladimir Putin received a hero’s welcome in ally Serbia on Thursday as the Russian president attempted to maintain political and economic influence in the Balkans, which is increasingly looking Westward.
Putin’s presidential plane was escorted over Serbian airspace by MiG-29 fighter jets he recently donated to Serbia as he arrived for the one-day visit. Church bells tolled, guns saluted and people waved Russian and Serbian flags on Putin’s route through the Serbian capital, Belgrade.
Serbia has maintained close links with traditional Slavic ally Russia despite formally seeking European Union membership. It has refused to join Western sanctions against Russia over Ukraine and has pledged to stay out of NATO.
Putin has recently stepped up efforts to restore Moscow’s influence in the former communist countries of Eastern Europe.
Putin and his host, Serbian President Aleksandar Vucic, praised the relationship between the two countries. Putin handed a top Russian honor to Vucic, who gave a puppy of a Serb dog breed to the Russian president.
Vucic thanked Russia for its support for Serbia’s claim over Kosovo, a former province that declared independence in 2008, and added that “however small,” Serbia has been a “reliable partner” to Russia.
Several bilateral agreements were signed, including on the supply of Russian gas and weapons to Serbia.
On the gas, Putin said Russian companies are ready to invest about $1.4 billion into a stretch of a pipeline that would go from Turkey via EU-member Bulgaria to Serbia and then on to Hungary, “but in the end, everything will depend on other countries, including the European Union.”
Putin’s visit come as thousands have been holding weekly demonstrations against Vucic because of what they see as his autocratic rule.
Tens of thousands of Vucic’s right-wing party supporters were bused into the capital on Thursday to gather in front of the St. Sava Orthodox church, which the two presidents visited. They were chanting slogans including “Serbia-Russia, we don’t need the European Union!“
Vucic’s critics say the gathering was staged to suggest that the Serbian leader has many more supporters than opponents, who have been marching the same route since December to demand free elections and media.
Several liberal Serbian rights groups issued a statement on Thursday protesting “glorification of Vladimir Putin’s authoritarian regime.”
It said that Putin’s visit “indicates that the Serbian rulers are ready to sacrifice human rights and better living standards of citizens because of their servile attitude toward Putin’s regime.”
Russia’s interest in Serbia relates to its strategic position between East and West. Of Serbia’s eight neighbors, five are NATO members and two more are seeking membership; and four are in the EU and two more are working toward accession. Serbia remains Moscow’s only ally in the region.
Unlike NATO, Putin formally does not oppose Serbia’s EU path and analysts believe that this is because he wants a staunch ally — or perhaps a Trojan horse — within the 28-nation bloc.
Putin’s popularity in Serbia is mostly because the Kremlin is supporting Serbia in its rejection of Kosovo’s independence. In contrast, most Western countries have recognized Kosovo’s statehood.