Reference media reports appeared in the section of print media on 3rd September 2020 based on the opinions/views expressed at a virtual moot organized by Think Tank at Islamabad Policy Institute (IPI). 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.
Government is not introducing any new main grade for diesel and petrol rather; it has simply altered the product specifications in relation to sulfur contents, which will now be conforming to Euro-V standards instead of Euro-II. 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.
Euro-V specifications have been finalized in consultation with all the stakeholders especially the oil industry and it is 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 has also updated its testing infrastructure conforming to Euro-V standards. Eventually, 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, it needs to be clarified that ultra low levels of sulfur contents result in reduction of lubricity and conductivity, which increases wear and tear of older engines and damages fuel pumps. However, addition of appropriate additives allows older engines to operate efficiently. Accordingly, the two additives have been appropriately incorporated in the government approved specifications. This will ensure better performance by the vehicles of lesser standards. The relevant stakeholders in the automobile sector have also admired the government decision.
The main argument of the report about burden on the local consumers is also incorrect and misleading. In fact, in view of its recent tender results for Euro-V petrol, PSO has received prices either equal to or even below than the current deliveries of Euro-II petrol prices. Moreover, PSO’s tender participation has 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.
