September 03, 2020: The Petroleum Division (PD) on Thursday rejected negative views expressed at a virtual moot organized by a Think Tank, Islamabad Policy Institute (IPI), the other day against its decision to import Euro-V standard petrol and diesel in the country, terming them baseless and misleading.
The presumption made during the webinar was incorrect and contrary to the facts, the Petroleum Division said in a press statement.
“It has been presumed that the recent government decision for introduction of Euro-V petrol and diesel in the country is premature owing to limitations of the existing retail network and up-country storages, improperly defined Euro-V specifications, inadequate product testing capacity, the absence of Euro-V compliant engines and the burden on lower middle income consumers. This is neither factually true nor an accurate representation of the facts.”
The PD said the government was not introducing any new main grade for diesel and petrol; rather it had simply altered the product specifications in relation to sulfur contents, which would now be conforming to Euro-V standards instead of
“Therefore, the notion of the limitations of existing retail network and storages is irrelevant and out of context, as no special arrangements at outlets and storages are needed.”
It said Euro-V specifications had been finalized in consultation with all the stakeholders especially the oil industry and it was incorrect to call them improper.
“Imported products are tested at discharge ports by the Hydrocarbon Institute of Pakistan (HDIP), which has updated its infrastructure by investing million of rupees, besides PSO [Pakistan State Oil] has also updated its testing infrastructure conforming to Euro-V standards. Eventually, the HDIP and its testing capacity are in sync with the requirements for shifting towards Euro-V fuels.”
As regards the absence of Euro-V compliant engines, the Petroleum Division said, it needed to be clarified that ultra low levels of sulfur contents resulted in reduction of lubricity and conductivity, which increased wear and tear of older engines and damaged fuel pumps. However, addition of appropriate additives allows older engines to operate efficiently.
Accordingly, it said, the two additives had been appropriately incorporated in the government approved specifications. “This would ensure better performance by the vehicles of lesser standards. The relevant stakeholders in the automobile sector have also admired the government decision.”
The Petroleum Division also set aside the main argument of the Think Tank’s report about burden on the local consumers, declaring it “incorrect and misleading.”
“In fact, in view of its recent tender results for Euro-V petrol, the PSO has received prices either equal to or even below than the current deliveries of Euro-II petrol prices.”
Moreover, the PSO’s tender participation had also improved due to introduction of better fuels in the country. “Accordingly, no huge financial impact on general consumer or any negative effect on balance of payment is expected.”
Petroleum Division is committed to supply quality of fuels with a view to improve the overall environment and emission control standards in the country.