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Feb 11, 2017
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Revolutionary Changes in Fuel Industry in Pakistan

Heard the good news yet? There have been some remarkable changes in fuel industry of the country, and they are big! Cargo to Pakistan received its first lot of diesel from Kuwait earlier in January followed by another few weeks later.

The reason it has been highlighted so much is that the imported diesel qualifies according to Euro II standards. The diesel which has Sulphur compounds in its composition is a common cause of environmental pollution. Sulphur compounds are known for their bad odor and the culprit of polluting black smoke.

Unluckily, the diesel most vehicles in the country use come in the same category. However, the new imported lot is claimed to be more environment-friendly. The Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi claimed that it is 95% more refined and has only traces of hazardous compounds. The quantity of Sulphur containing compounds is as low as 250 parts per million (ppm).

PSO Leads the way!

Government is also being seen playing active part in this bargain. According to a new standard set by government, the quantity of Sulphur content in the diesel should not exceed more than 500 ppm. From now the diesel that does not match this standard will be considered substandard and will not be permitted for public sale.

Shell Pakistan, is also a key stakeholder and a big name after PSO, known for its quality of service. An official of Shell Pakistan has also told that Shell is keen to flow the new trend as well. And they have also received their first lot of refined diesel quality.

The figures of Sulphur in new diesel when compared with the old type of diesel which was commonly used, are remarkable. The previous low-quality diesel had 5,000 ppm. The difference is quite notable, isn’t it? This trend has been seen worldwide. About two dozen countries have moved to diesel products that are low in Sulphur content.

Currently, the demand of diesel in the country is estimated to be 8.4 million tons per year which is approximately 0.7 million tons per month. In this huge industry, Pakistan State Oil (PSO) holds a major share in the sale of fuel that is almost 47 percent.

How will this affect the price?

The concerns of general public are justifiable. Most people are thinking that better quality of fuel would make them buy it on higher rates. The minister made this clear in his statement that all the companies are now bound to sell Euro II diesel without any increase in price. He further explained that high-speed diesel is a regulated product which is used worldwide. The ministry only issues order of increase in price when there is fluctuation in the world markets.

The vehicles running on this diesel will help in reducing the amount of pollution or at least will not contribute in it. On the other hand, high-quality diesel also maintains higher emission standards in vehicles using it.

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