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‘Transition to Euro V fuels needs public debate’

By Khalid Mustafa
September 03, 2020

ISLAMABAD: Without making available Euro V Engines in Pakistan's vehicular fleet and enabling refineries to produce POL products at par with Euro-V standards, the government’s abrupt enforcement of Euro-V specifications from September 1, 2020 will serve nothing but cause wastage of millions of dollars without any justification.

More importantly, the import of Euro-V petrol will also exert pressure on balance of payment as the country is already experiencing the financing constraints. As per the government instructions, all petrol imports from Sept 1, 2020 would have to be in accordance with Euro-V specifications. Meanwhile, in the next few months, diesel imports too would have to comply with the new standards.

This is the crux of the Islamabad Policy Institute (IPI) report titled ‘Rushed Transition to Euro-V Standard Fuels: Need for A Public Debate’. The report has been authored by IPI’s Distinguished Fellow Dr Ilyas Fazil, who has previously served as Member (Oil) in Oil and Gas Regulatory Authority and as the Chief Executive Officer of Oil Companies Advisory Council.

However, it urged the government to review its timeline for the implementation of Euro-V fuel standards in the country to enable the stakeholders to adequately prepare for the transition and warned that a hurried shift could affect the attainment of the goal of environmental improvement.

The report raised the thought provoking questions on the initiative of the government saying, “Has the government ensured that country has enough Euro V engines in Pakistan's Vehicular Fleet? Has the Automobile Industry confirmed that Euro V engines with Euro V emissions-control systems are available? And if not, we will be spending millions of dollars without justification.”

The report also mentions that the existing refineries are not capable of producing Euro V PMG or HSD. And complete changeover to Euro V will not be possible till the refineries confirm their capability. “In such a scenario too, we will be spending millions of dollars without justification.”