IPI Rejoinder to Petroleum Division’s Statement on Euro-V Report

IPI Rejoinder to Petroleum Division’s Statement on Euro-V Report

This refers to the clarification issued by the Petroleum Division on Islamabad Policy Institute’s Report titled “Rushed Transition to Euro-V Standard Fuels: Need for a Public Debate” which has been widely covered in the print media on September 3, 2020.

In its clarification, Petroleum Division admits to the fact highlighted in IPI’s Report that the specifications notified are not true Euro-V specs but, to quote the Petroleum Division itself, are prevailing Euro II specifications in which only the Sulfur content has been reduced. However, as pointed out on page 15 of our Report, ‘issued specifications have ignored correct parameters and Test Methods according to the Worldwide Fuel Charter Edition 6, 2019’. This also confirms our contention that the Petroleum Division or HDIP are either not aware of what Euro-V really means and also not aware of the Deviations and Omissions from true Euro-V specifications which have been clearly listed on Page 12 of our Report. This is highly unprofessional and IPI reiterates that the ‘pretend’ specifications issued do not represent genuine Euro-V fuel. 

Since the specifications issued are not correct and do not conform to the true specs or Test Methods, IPI reiterates its stance as to whether HDIP has the capacity/capability to address the remaining parameters or test methods listed for Euro V. This too remains unanswered.

IPI Report further highlights that total conversion to Euro-V from Euro-II cannot take place because the local Refineries will not be able to produce Euro V fuel, either PMG or HSD. This fact and its impact on the entire supply chain has been completely ignored by the Petroleum Division.

It is feared that launching a fuel that is not fully in accordance with the Euro-V standards and the fact that domestic refineries do not have the capacity to produce Euro-V standard fuels would compromise the integrity of the product.

Petroleum Division has also accepted the fact that Euro-V compliant engines are not available and mentions additives to make the fuel compatible with the older vintage engines, which by the way, form almost 100% of Pakistan’s vehicular population. We continue to mix Euro-emissions compliance with Fuel when, as our Report clearly specifies, Euro compliant Engines means presence of highly sophisticated engine-management systems which also have exhaust aftertreatment systems where the engine and the exhaust after-treatment are designed as a system. Using Euro-V fuel in non-compliant engines is not acceptable.

The Automobile manufacturers are aware of these facts but tend to ignore this and no wonder, as stated in Petroleum Division’s clarification ‘the relevant stakeholders in the automobile sector have also admired the government decision’. Are we supposed to be impressed with such

 

platitudes when the main stakeholder, namely the Pakistani consumer, especially the poor motorcyclist continues to be ignored?

It was an irony to note the PSO Euro-V advertisement showed a well-to-do family with a BMW (no less) in the background. We wonder who the ad is supposed to impress, certainly not the poor consumer who is again being forced to swallow a bitter pill.

If as the Petroleum Division claims that the oil industry has been consulted, has the Oil Industry also denied all the problems associated with the decision, namely impact on our infrastructure, ports, storages, FOTCO’s trestle, and PAPCO’s dual fuel Project, all of which have been highlighted in our Report?

IPI reiterates its suggestion that a Public Debate on the subject of Euro-V be immediately initiated so that all aspects are studied threadbare, to avoid the problems that our Report highlights.

IPI urges the Petroleum Division to properly study our 16 page Report and to hold in abeyance the switchover from Euro- II to Euro-V till such time. Decisions made in haste cannot be tenable where our fuel supply chain (which impacts every sphere of life) is compromised.

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