ISLAMABAD: The oil industry has urged the federal government to immediately ban the illegal import and distribution of light aliphatic hydrocarbon solvent mixed with petroleum products that cause damage to automobile engines.

Expressing grave concerns regarding illegal imports, Oil Marketing Association of Pakistan (OMAP) Chairman Tariq Wazir Ali said this solvent is being extensively used in the adulteration of petrol, leading to significant repercussions for both the industry and the country at large.

In a letter to the petroleum secretary, the chairman of the Oil and Gas Regulatory Authority (Ogra) and the director-general of oil, Mr Wazir said the customs authorities had confiscated around 900 tankers of hydrocarbon solvent imported by certain quarters without a legal cover that was later released after the involvement of Ministry of Petroleum at penalty of Rs300,000 per tanker. The customs authorities had estimated the price differential between Rs50 and Rs150 per litre.

The OMAP said the sale of adulterated fuel at illegal fuel stations tarnishes the reputation of legitimate oil companies. Secondly, its adulteration was undetectable.

“If this solvent finds its way into the fuel supply of franchisees of recognised oil companies, it becomes nearly impossible to detect,” he said, adding that current testing protocols had not indicated the presence of such solvents, making it a silent and pervasive threat to the quality and integrity of fuel products.

Says adulterated petrol damages engines, causes loss to exchequer

Thirdly, the environmental impact of this solvent was largely unknown, but its unregulated use was likely detrimental. “Moreover, its effect on combustion engines is certainly negative, potentially leading to engine failures and reduced lifespan of vehicles, which will further damage public trust in our products”, he said. Fourth, the infiltration of adulterated fuel into the market significantly loses legitimate sales for oil companies.

Fifth, it was causing revenue loss to the government, the OMAP claimed. Explaining, it said the illegal import and sale of this solvent deprived the government of precious revenues that would otherwise be generated through the legitimate sale of gasoline.

“This loss is detrimental to national interests, especially in the current economic climate. Every litre of this solvent that replaces gasoline means a loss of at least Rs60 in the form of petroleum development levy,” he said.

Published in Dawn, August 30th, 2024