Under the directives of Prime Minister Imran Khan and Federal Minister for Energy Omar Ayub Khan, the state-owned oil marketing company, Pakistan State Oil (PSO), has started import of Euro-V standard fuel in the country, said spokesperson of Petroleum Division.
In a statement on Saturday, he said PSO was the first oil marketing company to initiate the process of importing Euro-V petrol.
This move will enable country to import better quality fuel and primarily aims to protect the environment from climate change and global warming, the statement added.
He further added that the Petroleum Division had formulated policy guidelines for switching all kinds of petrol imports to Euro-V specifications from August 2020 onward to revolutionise the fuel mix of the country.
“In addition, all diesel imports of the country will conform to Euro-V standard by January 2021,” he said.
These policy guidelines have been shared with the Oil and Gas Regulatory Authority (Ogra) for implementation and to ensure import of Euro-V petrol and diesel in line with deadlines set by the federal government.
He added that Euro-V petrol will help Pakistan cut down the sulphur content to avoid air pollution while it would also improve health of vehicles which have been affected by low-quality fuel.
“The government is encouraging private oil marketing companies to introduce better grade fuel to protect the environment,” he said. Last month, PSO took the lead in launching an electric charging facility at one of its fuel stations in Islamabad, which was inaugurated by the energy minister.
The Hydrocarbon Development Institute of Pakistan (HDIP) has also set up testing labs for examination of Euro-V fuel specifications before oil marketing companies begin importing the upgraded version of petrol and diesel in the country.
Under the guidelines, the current mechanism for marketing of petrol and diesel with regard to pricing and components will remain in place. Ogra and the Oil Companies Advisory Committee (OCAC) will take further necessary action accordingly.
The prevailing pricing formula may continue ie average Gulf price for Euro-V diesel and five-day mean of Platts Arabian petrol plus premium, freight and incidental charges.
The pricing benchmark and mechanism for local refineries, producing diesel and petrol, may be based on the actual landed import price of Euro-V diesel and petrol for Pakistan State Oil’s (PSO).
Ogra will make price calculation in consultation with the oil refineries and PSO, so that any undue advantage to the refineries producing fuel below Euro-V standard is avoided.
Published in The Express Tribune, August 9th, 2020.
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