OCAC defends refinery standards

#OCAC #defends #refinery #standards

KARACHI: Oil companies’ Advisory Council (OCAC) has stressed that Pakistan’s refinery manufactures diesel according to the features being notified by the Ministry of Energy (Petroleum Division) and has invested well to improve fuel quality.

The OCAC strongly denied a report published in The News on Tuesday, based on a letter from the Oil Marketing Association of Pakistan (OMAP) about the quality of high -speed diesel.

The OCAC responded to the OMAP’s letter, “This report misrepresents the standard of high -speed diesel (HSD) developed by local refineries and reflects the amateur, because it is empty of the facts.

The council emphasized that local refineries are strategic national assets, which play an important role in Pakistan’s energy safety and economic development. Importing diesel due to poor local standards is necessary. The proposal was declared misleading. In Pakistan, refineries reiterate it, produce diesel according to the features informed by the Ministry of Energy (Petroleum Division). Imports on a HSD cargo cargo costs about $ 45 million – when proper local goods are available an unnecessary burden.

Over the years, refineries have invested in upgrades, which include expansion of capacity and installation of iceromization and diesel hydro -diavradis (DHDS) units, which enables them to enhance fuel standards. The council added that Pakistan’s refineries currently produce HSDs with sulfur content from Euro I to EuroV. The One Refinery already produces diesel, two supply Euro III, according to EuroV, and produces diesel with the remaining 5,000 ppm sulfur content-which is less than a close data of 10,000 ppm. In particular, even the eurov diesel manufacturer faces challenges with product development due to contradictory off -tech by some companies, resulting in operational difficulties.

The OCAC noted that the delay in implementing the Brown Field Refinery Policy 2023 has affected the upgraded timelines, which is already known to the authorities. Once the upgrade is completed, all local refineries will supply EuroV fuel.

The council added that the product pricing is associated with specifications, as all eurov diesel manufacturers are subject to a discriminatory price. This cost has been exported from refineries that do not produce HSD according to the government/import specifications. The recovered amount has been added to the margin of freight equality (IFEM) abroad and transferred to consumers, ensuring that there is no additional financial burden on local consumers due to differences in the specifications.

The OCAC emphasized that refineries operate under regular licensing conditions, and it is evident from any loyal citizen that local production cannot be done fairly compared to imports, as excessive import trade deficit hurts the economy. The council also pointed out that eurov diesel is not required for a significant part of Pakistan’s transport and agricultural sectors, which are both appropriate and effective for locally manufactured grade market needs.

Finally, it identified non -standard fuel smuggling in the market, which poses the real risk to product quality and market stability. The OCAC added that all information about some companies with OGRA is available that has not made local purchases for almost a year and has stopped sales of HSD from their retail networks.