Pakistan not to import fuel from India before 2014
Pakistan has shelved plans to import petrol, diesel and all other petroleum products from India till 2014 due to difference in product specifications used in both countries.
Pakistani refineries produce zero-euro quality oil whereas Indian refineries produce Euro-3 and Euro-4 quality oil, which is cleaner and more environmentally friendly fuel. Pakistan is still preparing a road map to introduce Euro-2, Euro-3 and Euro-4 for clean energy in the country.
“Pakistani refineries have been tasked to produce-Euro-2 quality diesel till July 2014 and therefore the government wants to shelve the plan of oil trade with India till then,” official said adding that the other reason is Pakistan has penned an oil supply contract with Kuwait Petroleum Corporation (KPC) till 2014.
An official of the Engineering Development Board (EDB) said that the use of Euro-3 and Euro-4 would cause technology shift and therefore it would be difficult to run existing vehicles on fuel produced in India.
“Different specifications of petroleum products have barred the countries to reach any agreement,” a senior government official said. Pakistan, during talks held in New Delhi in the second week of July, had asked Indian refineries to change specifications to meet requirements of Independent Power Producers (IPPs) operating in Pakistan but they refused to do so.
“We have long-term agreements of supplying oil with certain specifications to IPPs,” the official said.
The other stumbling block is the high cost of transportation due to long distance. Indian refineries that produce furnace oil are located in the south of the country and cater markets of Sri Lanka and Singapore.
In case petrol and diesel, Indian refineries are producing Euro-3 compliant fuel for remote areas of the country whereas Euro-4 quality fuel is being supplied to big cities like New Delhi, Mumbai and Kolkata. These fuels are most environmentally friendly whereas Pakistani refineries except Pak-Arab Refinery Limited (Parco) are producing low quality petrol and diesel.
On the other hand, Pakistan is using better quality furnace oil with 3.5% sulphur content while neighbours produce furnace oil with sulphur content ranging between 4% and 4.5%.
Pakistani refineries collected over Rs150 billion from consumers in the last several years under a special tax deemed duty. The amount was supposed to be used for upgrading plants to produce Euro compliant fuel but oil refineries except Parco failed to do so. Refineries are now demanding permission to charge more in order to collect $1 billion from consumers to upgrade plants to produce Euro-2 compliant petroleum products.
The other reason is that Pakistan plans to meet only 20% to 25% of its needs for petroleum products from India to avoid overreliance on the old rival due to security concerns. “We will continue to import oil from Kuwait and other Gulf countries in a bid to ensure secured supplies,” a government official said.
Published in The Express Tribune, September 4th, 2012.
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1719053250-0/BeFunky-collage-(5)1719053250-0-270x192.webp "non solar consumers bear rs200b burden")
The Government of Pakistan has charged "Petroleum Development Levy" since 1950 or even earlier. Trillions of dollars have been collected. During a meeting with Justice Rana Bhagwan Das; this issue was discussed by me when the GOP imposed another tax "Carbon Tax". He confirmed that trillions of Dollars though have been collected under PDL; but there is no trace of the huge amount, however, the Supreme Court ordered not to impose 10% Carbon Tax; yet the same was charged under the heading "Petroleum Levy". Furthermore,.Pakistani refineries collected over Rs150 billion from consumers in the last several years under a special tax deemed duty. The amount was supposed to be used for upgrading plants to produce Euro compliant fuel but oil refineries except Parco failed to do so. We are producing "ZERO EURO " standard petroleum products; even recycling of "Used lubricating Oil" by Acid-Clay technology instead of Clean Oil Technology has caused havoc s- entire fresh water and even agricultural products have become poisonous and due to its use the atmosphere is severely polluted and is causing spread of deadly diseases like cancer, stomach and skin diseases etc.The demand of further US Dollars 150-200 Million by the refineries to upgrade petroleum products to EURO-II standards is quite absurd. Any further rise in petroleum products is unbearable and is bound to shatter the whole social fabric of the society and the people might revolt and the law and order situation will worsen.
This are some errors in the articles:-
1) I think the EDB official does not know that Euro 2-4 fuel can run on vehicles without any issue; furthermore, most vehicles in the market now are at least Euro 2 compliant for your information. It's a shame that at a time the world is heading towards implementation of Euro 5 we still have not successfully moved to Euro 2 yet.
2) For those complaining about importing stuff from India. Please grow up and consider what's best for the people of both the countries instead of investing billions in bombs aimed at obliterating each others population centers. Time to grow out of that mindset which has left our country in tatters and start thinking rationally.
‘It would be difficult to run existing vehicles on fuel produced in India’ I can really see very old vehicles(atleast 1970s) still running in India. Is that they are importing zero-euro standard fuel from Pakistan?
@andleeb (Ottawa,Canada):
You live in Pakistan?
In reponse to Truth bites,
Pakistan can certainly refine its own oil, but to set up such refineries it costs, billions of dollars, where will Pakistan get this money, The newest refinery in Gujarat by Reliance, cost $10 billion, largest such operation in the world, the new refinery in Bathinda Punjab cost, $3.5 billion and is a stone throw away from Pakistan. To builld such huge operations you need either Homegrown Business Powerhouses or foreign investment, both missing in case of Pakistan. It is wise to buy the oil from India, for economies of scale.
@Truth Bites: India imports crude oil and has has refineries that use this to produce high grade fuels and other petroleum at over 2 million barrels a day (around 220 million tonnes a year - expected to surpass 300 million tonnes by 2017). With such capacities it not only has enough refined oil products for its own needs but enough to export upto 50 million tonnes of petroleum products - this is expected to rise to 80 million tonnes by 2014.
If Pakistan develops and upgrades its refineries it can do the same - import crude and turn it into refined petroleum products - diesel / gasoline etc. This way it wont have to import refined oil (which is much more costly than importing crude)
But it wont be long till all the oil in the world is used up (another 100 years or so) so it may be a better idea for countries like India and Pakistan to look at alternate sources of energy to run our cars and scooters - electric/hybrid vehicles that can use sources like solar, wind, hydro and nuclear.
india behind this
@andleeb (Ottawa,Canada): Car on water. Why cant humans survive on water. Pakistan people are looking for and will belive in any miracle now.
@Sindhi-Topi: "The “Water-Kit” that Dr.Abdul Qadeer Khan endorsed cannot be used in Pakistan because India has shut down the water." +++++++++++++++++++++++++++++++++++++++++++++++++++ Just what I would expect the dastradly Indians to do!
I really dont understand, why we have to import oil from India? if India is an oil producing nation, it would have make sense but importing a refined fuel from India that itself imported from middle east(which is closer to Pakistan) doesnt add up!
Plus why the mad planners dont even think about the human resources linked to it? Its like outsourcing our own jobs and refineries to India. Focus should be more on to invite investment into the country and setup and expand existing ones, these will create jobs and also possibility to export refined fuels.
@Sindhi-Topi: How many millions of gallons will you need to run this water kit? I can send you some water tankers.
@Faraz: Finally a sensible reply
@ Faraz is undoubtedly sane. No harm in importing something which is a better option...
@andleeb (Ottawa,Canada): Its easy to make stmts sittin in lap of luxury in Canada. live with power cuts for few weeks den make such stmts. And if u believe in d water kit thing U r not even worthy to b considered a sensible human
@andleeb (Ottawa,Canada): " It is better for us to live in darkness than to import oil from India."
Talk is cheap, nobody lives on grass, no point saying these emotional things when they have no value. If you have a solution then say it otherwise stop trying to pushing us in darkness when you yourself are enjoying the perks of the West.No harm in importing oil from India if it helps Pakistan. USA and China have trade relations, China Taiwan have trade relations, Korea, Japan have trade relations, USA, Russia have trade relations then why not Pakistan, India, come out of dark ages where people like you want to keep us.
@andleeb (Ottawa,Canada): The "Water-Kit" that Dr.Abdul Qadeer Khan endorsed cannot be used in Pakistan because India has shut down the water.
'It would be difficult to run existing vehicles on fuel produced in India' is a technically incorrect statement since a higher euro compliant fuel can run lower euro compliant vehicle without damaging its engine but with end result of its exhaust producing less toxic gases which is beneficial for the environment. It so appears that Pakistan govt due to internal pressures do not want to purchase fuel from India but it should have come up with a better argument.
"Pakistani refineries collected over Rs150 billion from consumers in the last several years under a special tax deemed duty. The amount was supposed to be used for upgrading plants to produce Euro compliant fuel but oil refineries except Parco failed to do so. Refineries are now demanding permission to charge more in order to collect $1 billion from consumers to upgrade plants to produce Euro-2 compliant petroleum products."
what the *. Are they are not supposed to make any new invest instead they are going to *intaxicate** the already overburdened population and yet again produce the same crappy products....Refineries all over the world make investments on their own and earn from the same.....Who is making policies around here.....
Whatever happened about the car which runs on water? I thought Abdul Qadeer Khan, our chief scientist had endorsed it. It is better for us to live in darkness than to import oil from India.
Refinery lobby got to the government with all kinds of goodies. In the meantime who cares for joe average Pakistani. Bad diesel is linked to prostate cancer. So what if few extra cases of prostate cancer show up till 2014. Why not copy India's road map which switched from dirty diesel to clean diesel? Why not speed up the switch to clean diesel by 2013 and use to the advantage of ruling party during the election campaign? But this requires logic and ah that is the one in short supply. I am going to call Pakistan holdistan. Everything is on hold. First she wants liberal Visa regimen but it is on hold. She wants to import gas from Iran it is on hold..Import of electricity is on hold. Production of more electricity is on hold. Do you get the picture or shall I continue with my list.?
Does this mean Pakistan remains in stone age till 2014??
"An official of the Engineering Development Board (EDB) said that the use of Euro-3 and Euro-4 would cause technology shift and therefore it would be difficult to run existing vehicles on fuel produced in India"
Buddy, I think you got it the other way round!