Recycling used motor oils
There is no legislation in Pakistan for waste management of such products
PHOTO: REUTERS
ISLAMABAD:
Lubricant oils are as important as petrol and diesel. It is a high margin lucrative business for all those involved in the supply chain. It is unregulated as well giving pricing freedom to the lubricants suppliers and manufacturers.
Unfortunately, scant attention has been paid to the issues involved in this sector. It used to be an under regulated sector requiring licensing but now it is unregulated, with positive and negative consequences. Used oil is an environmental liability having the potential to pollute water resources. Used oil is being recycled by SME recyclers with rudimentary processing and is marketed as a spurious product compromising engines performance and integrity of vehicles. Recycling is beneficial and is done in most developed countries; however, it has to be under oversight and controls. Oil marketing companies (OMCs) should recognise their role and responsibility in this respect.
There is only one refinery producing lubricant. However, lubricants are imported as well. OMCs blend and market lubricant oils through their distribution networks. There are thousands of petrol pumps and unaccounted workshops involved in oil sales and change business. Traders and importers also sell through shops and directly to large industrial and institutional buyers.
Total demand of lubricating oils in Pakistan is approximately 400 million litres (400,000 mt) per annum out of which about 50% is produced locally by registered blending plants with locally available Lube Base Oils (LBOs) from National Refinery Limited (NRL). Around 11% of the LBOs are imported in raw form which is further converted into finished products while 11% finished lubricants are being imported and smuggled to meet local demand.
Used oil – an environmental liability
While petrol and diesel and other fuels are consumed, lubricating oil is not. It remains there in the engine sumps and gear boxes etc. Oil has to be changed after a certain period varying from a month to several months. And thus, used oil comes into being. It is both an asset as well as a liability; asset, because it can be recycled after some processing and thus has an economic and even commercial value. It is an environmental liability. If not adequately controlled, it can cause water pollution. Also used oil may find its way into spurious products damaging automotives and other user equipment.
There are many reasons to reuse and recycle used oil including; to keep it away from polluting soil and water; motor oil does not wear out—it just gets dirty—so recycling it saves a valuable resource; less energy is required to produce rerefined base stock than a base stock from crude oil; re-refined oil must meet the same stringent refining, compounding, and performance standards as virgin oil for use in automotive, heavy-duty diesel, and other internal combustion engines, and hydraulic fluids and gear oils.
It is, therefore, a regulated activity requiring license and other quality and performance requirements; re-refined oil is equivalent to virgin oil, passes all prescribed tests and, in some situations, even outperforms virgin oil; used oil, in addition to being recycled, is also use as a fuel; after some minimal processing (filtering etc), it can be mixed with furnace oil and can be burnt in power plant, industrial boilers and furnaces. However, recycling as a lubricant offers a higher financial award.
Producer responsibility principle
In accordance with laws prevailing in almost all developed countries, the “Producer Responsibility Principle” is applied. This principle stipulates that “producers, importers, or any other party” responsible for placing products in the market may be obliged to take direct charge of the management of the waste generated by their products. In the case of used oil, this means that industrial oil manufacturers must guarantee and finance the management of an amount of used oils proportional to the amount of new oil placed on the market. Normally, lubricant manufacturers assign this job to a third company under contract, which collects, refines and resells the refined lubricant to the lubricant manufacturers.
Unfortunately, in Pakistan, there is neither any legislation nor any cooperative self-control industry mechanism fulfilling the requirements under, Producer Responsibility of Care. This is despite that respectable multinationals are involved in this business.
Although, it is government’s responsibility to bring the required legislation, the industry could have guided the government. Alternatively, nobody would have stopped them in bringing about the remediation system voluntarily, individually or under a cooperative self-help system.
Some measures have been taken at the petrol pump level. Adequate lubricants suction machines have been installed. Earlier, manual systems used to be there involving risks of spillage and other issues. However, the lubricant collected at the petrol pumps is not taken back by the lubricant manufacturers/ suppliers. Petrol pumps owners sell it to recyclers in SME sector. The recyclers are under no controls and employ very rudimentary processes like heating and filtering and using fuller earths and possibly may be adding some additives. These SME recyclers sell their reclaimed product in the secondary market of unbranded and cheap lubricants.
Need for policy and controls
Even this rudimentary system is not applicable to all the lubricant sold in the market. A significant amount of lubricant oil might be spilled and may be finding its way into the sewerage and ground water and even surface water that is drunk by people. Also, all lubricants may not be sold through petrol pumps. And there are a variety of lubricant oils used in other than automobiles; transformer oil, industrial machinery, railways, defence etc.
An all-embracing and comprehensive collection system has to be there. Collection points are to be there as well. It is not difficult. Although, it is a waste, it is an expensive commodity. All agents in the collection, transport and refining sector are paid under the market system. Only legislation, management and controls are required. All parties involved in the system are to be registered. Violations must be punishable under law. There is no dearth of legislative codes, most of it available on institutional websites. The OMC’s are operating in advanced countries as well and should be aware of the requirements and the details.
Due to poverty, unemployment and availability of low cost workers, waste recycling in all sectors has fared well in Pakistan. All kinds of wastes are collected and recycled, used oil included. Sometimes, this brings some disadvantages as well. Market and processes become uncontrollable and is penetrated by spurious elements, as has happened in the case of used oil. Fortunately, there are multinational OMCs as well who have access to knowledge, technology and capital. The Petroleum Division appears to be the lead agency in this. Other stake holders would be the OMCs, petrol pump associations, provincial EPAs, OGRA. A technical committee is required to be set up to develop the framework .This committee may prepare the legislative code as well for the consideration of the parliament as well.
THE WRITER IS FORMER MEMBER ENERGY OF THE PLANNING COMMISSIO.
Lubricant oils are as important as petrol and diesel. It is a high margin lucrative business for all those involved in the supply chain. It is unregulated as well giving pricing freedom to the lubricants suppliers and manufacturers.
Unfortunately, scant attention has been paid to the issues involved in this sector. It used to be an under regulated sector requiring licensing but now it is unregulated, with positive and negative consequences. Used oil is an environmental liability having the potential to pollute water resources. Used oil is being recycled by SME recyclers with rudimentary processing and is marketed as a spurious product compromising engines performance and integrity of vehicles. Recycling is beneficial and is done in most developed countries; however, it has to be under oversight and controls. Oil marketing companies (OMCs) should recognise their role and responsibility in this respect.
There is only one refinery producing lubricant. However, lubricants are imported as well. OMCs blend and market lubricant oils through their distribution networks. There are thousands of petrol pumps and unaccounted workshops involved in oil sales and change business. Traders and importers also sell through shops and directly to large industrial and institutional buyers.
Total demand of lubricating oils in Pakistan is approximately 400 million litres (400,000 mt) per annum out of which about 50% is produced locally by registered blending plants with locally available Lube Base Oils (LBOs) from National Refinery Limited (NRL). Around 11% of the LBOs are imported in raw form which is further converted into finished products while 11% finished lubricants are being imported and smuggled to meet local demand.
Used oil – an environmental liability
While petrol and diesel and other fuels are consumed, lubricating oil is not. It remains there in the engine sumps and gear boxes etc. Oil has to be changed after a certain period varying from a month to several months. And thus, used oil comes into being. It is both an asset as well as a liability; asset, because it can be recycled after some processing and thus has an economic and even commercial value. It is an environmental liability. If not adequately controlled, it can cause water pollution. Also used oil may find its way into spurious products damaging automotives and other user equipment.
There are many reasons to reuse and recycle used oil including; to keep it away from polluting soil and water; motor oil does not wear out—it just gets dirty—so recycling it saves a valuable resource; less energy is required to produce rerefined base stock than a base stock from crude oil; re-refined oil must meet the same stringent refining, compounding, and performance standards as virgin oil for use in automotive, heavy-duty diesel, and other internal combustion engines, and hydraulic fluids and gear oils.
It is, therefore, a regulated activity requiring license and other quality and performance requirements; re-refined oil is equivalent to virgin oil, passes all prescribed tests and, in some situations, even outperforms virgin oil; used oil, in addition to being recycled, is also use as a fuel; after some minimal processing (filtering etc), it can be mixed with furnace oil and can be burnt in power plant, industrial boilers and furnaces. However, recycling as a lubricant offers a higher financial award.
Producer responsibility principle
In accordance with laws prevailing in almost all developed countries, the “Producer Responsibility Principle” is applied. This principle stipulates that “producers, importers, or any other party” responsible for placing products in the market may be obliged to take direct charge of the management of the waste generated by their products. In the case of used oil, this means that industrial oil manufacturers must guarantee and finance the management of an amount of used oils proportional to the amount of new oil placed on the market. Normally, lubricant manufacturers assign this job to a third company under contract, which collects, refines and resells the refined lubricant to the lubricant manufacturers.
Unfortunately, in Pakistan, there is neither any legislation nor any cooperative self-control industry mechanism fulfilling the requirements under, Producer Responsibility of Care. This is despite that respectable multinationals are involved in this business.
Although, it is government’s responsibility to bring the required legislation, the industry could have guided the government. Alternatively, nobody would have stopped them in bringing about the remediation system voluntarily, individually or under a cooperative self-help system.
Some measures have been taken at the petrol pump level. Adequate lubricants suction machines have been installed. Earlier, manual systems used to be there involving risks of spillage and other issues. However, the lubricant collected at the petrol pumps is not taken back by the lubricant manufacturers/ suppliers. Petrol pumps owners sell it to recyclers in SME sector. The recyclers are under no controls and employ very rudimentary processes like heating and filtering and using fuller earths and possibly may be adding some additives. These SME recyclers sell their reclaimed product in the secondary market of unbranded and cheap lubricants.
Need for policy and controls
Even this rudimentary system is not applicable to all the lubricant sold in the market. A significant amount of lubricant oil might be spilled and may be finding its way into the sewerage and ground water and even surface water that is drunk by people. Also, all lubricants may not be sold through petrol pumps. And there are a variety of lubricant oils used in other than automobiles; transformer oil, industrial machinery, railways, defence etc.
An all-embracing and comprehensive collection system has to be there. Collection points are to be there as well. It is not difficult. Although, it is a waste, it is an expensive commodity. All agents in the collection, transport and refining sector are paid under the market system. Only legislation, management and controls are required. All parties involved in the system are to be registered. Violations must be punishable under law. There is no dearth of legislative codes, most of it available on institutional websites. The OMC’s are operating in advanced countries as well and should be aware of the requirements and the details.
Due to poverty, unemployment and availability of low cost workers, waste recycling in all sectors has fared well in Pakistan. All kinds of wastes are collected and recycled, used oil included. Sometimes, this brings some disadvantages as well. Market and processes become uncontrollable and is penetrated by spurious elements, as has happened in the case of used oil. Fortunately, there are multinational OMCs as well who have access to knowledge, technology and capital. The Petroleum Division appears to be the lead agency in this. Other stake holders would be the OMCs, petrol pump associations, provincial EPAs, OGRA. A technical committee is required to be set up to develop the framework .This committee may prepare the legislative code as well for the consideration of the parliament as well.
THE WRITER IS FORMER MEMBER ENERGY OF THE PLANNING COMMISSIO.