OGRA supports oil quality testing by independent lab

Petroleum firms float this proposal as they doubt test results of state-run HDIP

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has backed a proposal of hiring an independent laboratory to bring transparency in the testing of petroleum products, which comes in the backdrop of allegations of dubious examination by the state-run Hydrocarbon Development Institute of Pakistan (HDIP), officials say.



Ogra endorsed the proposal after the Oil Companies Advisory Council (OCAC) - a body that mainly comprises refining and marketing companies - approached the Ministry of Petroleum and Natural Resources, seeking permission to hire a third party to counter-check the HDIP test results.

In various instances, OCAC complained to the petroleum ministry, a sample was declared off-specification in the first test, but the second sample was found to be on-specification, though both the samples were taken at the same time.

OCAC argued that the contradiction led to delay in the discharge of cargo from anchored vessels and importers were forced to pay unnecessary demurrage charges. Consequently, consumers were burdened with such hefty costs.

If first test results were unsatisfactory, the second sample should have been examined by some other independent laboratory, the council suggested.

At present, HDIP tests the quality of petroleum products imported by oil marketing companies and industrial consumers at its Karachi laboratory prior to the unloading of cargo.

Samples for quality analysis are taken by approved surveyors of the OCAC in the presence of an HDIP representative according to the prescribed procedures.

In case of quality dispute, a second sample is tested by the HDIP in the presence of a nominated representative of the importer. Results of the second test are final and binding.



According to officials familiar with the development, the petroleum ministry was seeking approval of the Economic Coordination Committee (ECC) to allow OCAC to seek services of an independent laboratory for the second test instead of getting it examined at the HDIP lab.

The ministry also sought comments from Ogra, which, according to officials, stressed that the independent examination of petroleum products would bring more efficiency and transparency in the process. It would also shield consumers from the burden of demurrages due to delay in cargo shipments, Ogra said.

Published in The Express Tribune, March 11^th, 2017.

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