After I raised the issue about the delay in implementing Euro 4 diesel and the loss of lives from the toxic Euro 2 diesel fumes with high sulphur content of 500ppm, the Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed replied that the government had decided a new schedule to introduce:- (Hansard 05/11/2014 page 118)
- Euro 4 RON 97 in September 2015
- Euro 4 RON 95 in October 2018 and
- Euro 5 diesel in 2020.
The Minister acknowledged the fact that we are behind in implementing Euro 4 diesel with a sulphur content of 50ppm. Our neighbouring countries have adopted the best practice to reduce the carbon emission together with many countries in the world by implementing the Euro 4 and Euro 5 fuel, but not us. This delay is linked to the large investments required by the oil companies to replace Euro 2 with Euro 4 fuel.
I am glad the Minister agreed that “we are behind in implementing the best practice”. However, I am aghast at the long further delay announced. It was announced in 2011 that Malaysia would implement Euro 4 diesel in 2012. Subsequently it was postponed to 2014, followed by 2015. Now it has been abandoned altogether to be replaced by Euro 5 diesel after another massive 5 year delay to 2020. And the government is making all the excuses for the oil companies. Since when did the minister become a spokesperson for the oil companies? Is the government totally ignoring the health of the nation in drafting policies?
BHP announced in June 2014 that they will introduce Euro 5 diesel in their stations in Johore Bharu in July. After a slight “delay”, it was officially launched on 12th November by the Minister of Domestic Trade, Cooperatives and Consumerism, Dato’ Sri Hasan Malek. It is now available in BHP stations in Johore Bharu. The price is only RM2.30 per litre, which is the same as RON95 petrol.
On 1 April 2010, India launched the Euro-4 grade petrol and diesel in big cities and Euro-3 fuel for the rest of the country.
Subsequently, on 24 September 2010, India announced that it had completely switched over to the cleaner Euro 3 and Euro 4 petrol and diesel ahead of schedule, in less than the 6 months stipulated. The price of the Euro-4 diesel was only increased by Rs 0.26 (1sen) per litre. The cost to upgrade further to Euro 5 fuel will be met by a levy of Rs0.75 (4sen) per litre. The cost of upgrading the refineries to produce Euro 5 fuel was Rs 800 billion (RM42billion). The total cost was 5 sen per litre to bring in Euro 5 diesel into India.
In Malaysia, half the diesel is imported and half is refined in this country. We know the cost of upgrading the oil refineries run into billions of ringgits. However, the fully imported Euro 5 diesel in BHP only cost an extra 10 sen per litre. India achieved the Euro 5 fuel standard at an extra cost of 5 sen a litre by upgrading their refineries. Why can’t Malaysia do likewise before 2020? The government has raised the price of the diesel by as much as 40 sen since 2013 without a second thought. Now they are claiming the oil companies cannot afford to upgrade their refineries?
In China, Euro 5 equivalent fuel is already mandatory in Beijing and Euro 4 mandatory nationwide in 2014. This is because they found the use of low quality, high sulphur fuel to be a key contributor to air pollution. It is also bad for car engines and our health. In the Philippines, Unioil introduced Euro 4 diesel at the same price as the previous Euro 2 diesel by absorbing the cost in 2012!
The whole world has moved on while we are postponing again and again to save money for the oil conglomerates’ fat accounts. So instead of making excuses;-
- I urge the government and Minister to start implementing the clean diesel standard next year as scheduled by importing only Euro 4 and Euro 5 diesel,
- he Minister should make low emission and Euro 5 diesel mandatory in the cities like Kuala Lumpur and Penang which are regularly choked by smog and haze, and
- The buses and public transport vehicles imported must be compliant with the low emission standards.
With clean diesel, the buses, taxis and the public can also start upgrading to the newer generations of diesel vehicles without fear of damage to the engines. The oil companies cannot make any more excuses as the Philippines has done it at no extra cost to the public. The government must act as fast possible to protect the health of the people and their families. So that we don’t end up dying waiting for 2020.