Import of Euro-V diesel, petrol: Non-production of deadline summary draws Umar's ire

ISLAMABAD: Minister for Planning, Development and Special Initiatives, Asad Umar, has reportedly expressed his ire at the Petroleum Division for not bringing the summary about extension in deadline to import of Euro-V diesel and petrol before the Cabinet Committee on Energy (CCoE), well-informed sources told Business Recorder.

Asad Umar, who is also the chairman of CCoE scrutinizes proposals of Energy Ministry prior to submission to the Federal Cabinet.

Sharing the details, sources said, the CCoE considered a Petroleum Division proposal on June 4, 2020 on the issue of import of Euro V diesel and petrol. Regarding import of petrol, the CCoE directed that "the process of switching of petrol imports to Euro-V specifications shall be initiated forthwith. Imports of petrol below Euro-V specifications shall not be allowed to any OMC beyond August 1, 2020."

Federal Cabinet ratified the CCoE decision in its meeting held on June 23, 2020 and the ratification decision was received on June 29, 2020. Accordingly, the policy guideline was conveyed to the concerned stakeholders on June, 30, 2020.

Petroleum Division later received representations from major Oil Marketing Companies (OMCs) explaining that their import planning was based on, 45-50 days cycle, therefore, some of their petrol deliveries already contracted for the month of August 2020 would only be Euro-II compliant. However, their deliveries thereafter would be as per Euro-V specifications.

It was also stated that according to PSO their deliveries planned for 1st fortnight of August, 2020 would be Euro II compliant. However, the deliveries for 2nd fortnight of August, 2020 were planned to be Euro-V compliant. Ogra had also raised the issue and recommended for review of the time period given for switch over to Euro-V petrol imports, which might lead to another petrol crisis if already planned deliveries of current specifications were not allowed.

Under the prevalent circumstances, Petroleum Division was of the view that deadline of 1st August, 2020 was unlikely to be met therefore, in order to ensure smooth transition from Euro-II to Euro-V petrol imports, OMCs be allowed to procure their already planned petrol deliveries as per current specifications of Euro-II during August 2020. However, this relaxation would not be extended beyond the month of August, 2020 and accordingly; all imports would conform to Euro-V specifications for 1, September, 2020.

During discussion, Minister for Planning, Development & Special Initiatives/Chairman CCOE, expressed concern that the instant case had been submitted directly to the Cabinet while bypassing the forum of CCoE which precluded the opportunity to scrutinize the case in detail. The Petroleum Division clarified that direct submission of case to the Cabinet was opted for due to paucity of time.

Copyright Business Recorder, 2020