ISLAMABAD: Amid protest and resistance by the oil industry, the government has ordered a ban on import of petrol and diesel of less than Euro-V standard with effect from Aug 1, 2020, and Jan 1, 2021, respectively.
This has put the oil industry and the authorities in yet another conflict when the two sides were already poles apart on the petroleum pricing mechanism and maintenance of 20-day stocks, leading to serious supply disruptions in the recent months.
The oil industry has expressed an inability to abide by the fresh instructions, particularly because of such short notice and has warned of Rs7-8 per litre price hike and $200 million annual foreign exchange loss. It said the country’s motor vehicle fleet was also not ready for such a steep switchover.
On Wednesday, the Directorate General of Oil of the Petroleum Division notified specifications of Euro-V petrol of all three grades (RON 92, 95 & 97) and asked the Oil & Gas Regulatory Authority (Ogra), Hydrocarbon Development Institute of Pakistan (HDIP) and oil industry to implement these specifications.