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Rising Oil Prices Push Demand for Dirtier Fuels in SE Asia
The 40% rebound in oil prices over the past 12 months is prompting a sharp rise in orders for cheaper but dirtier blends of gasoline and diesel fuel for key markets in southeast Asia.
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The 40% rebound in oil prices over the past 12 months is prompting a sharp rise in orders for cheaper but dirtier blends of gasoline and diesel fuel for key markets in southeast Asia.
Bloomberg News says Indonesia has trimmed orders for 92-RON gasoline and has already ordered more low-octane (88-RON) gasoline than it bought in all of 2017.
The Philippines is poised to begin importing high-sulfur diesel fuel for the first time in two years. Government-controlled oil companies have been ordered to prepare by October to begin importing cheaper Euro 2-spec diesel, which has 10 times the sulfur content of the Euro 4 fuel they have been producing, for industrial and transport users.
Analysts say the switch would mark the first time an Asian country has moved from a higher to lower emission standard.
Bloomberg says the governments of both countries are struggling to hold down fuel prices for consumers as inflation rises, even though their strategies will hurt air quality.
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