Oil companies refuse the introduction of high quality diesel in Pakistan

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Oil companies in Pakistan have rejected the government’s request to introduce Euro-II and Euro-IV High-Speed Diesel in the country. The refusal comes on the basis of concerns about the feasibility of these diesel grades for the Pakistani market.

In a proposal to the oil marketing companies operating in the country, Ministry of Petroleum and Natural Resources suggested to import Euro-III and Euro-IV High-Speed Diesel to be sold under deregulation.

The government also suggested that the local refineries should be upgraded to match the standard of import quality standard. The ministry also asked the Oil Companies Advisory Council to propose a method and timeframe for importing High-Speed Diesel.

OCAC did not consider the government’s request stating that the cost-benefit analysis of importing this fuel was not feasible to them. OCAC further told the ministry that the upgradation of fuel from Euro-I to Euro-V in Europe took almost 16 years. This upgradation of fuel in Europe started after the design of new engine which compiled upgraded fuels, resultantly, encouraging the companies to upgrade the fuel quality. They further argued that the scenario in Pakistan is totally different from the situation in Europe.


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