The Oil Industry Protests Pakistan Railways’ Tender Specifications
The oil industry is voicing its concerns over Pakistan Railways’ tender specifications that favor imported high-speed diesel (HSD) over locally produced HSD. Adil Khattak, chairman of the Oil Companies Advisory Council (OCAC), has raised the issue with the government, highlighting the impact on local refineries.
The tender requires a minimum flash point of 66 degrees Celsius, which aligns with imported HSD standards but not with locally produced HSD, which has a minimum flash point of 54 degrees Celsius. This discrepancy means that Pakistan Railways cannot use locally produced diesel, leading to a reliance on imported fuel.
The oil industry has provided examples of other countries, such as India, with lower flash point specifications for their locally produced diesel. Despite efforts to resolve the issue, Pakistan Railways has not budged on the 66-degree flash point requirement.
This situation not only results in a loss of foreign exchange but also makes Pakistan Railways dependent on imported fuel, impacting the local industry. The Ministry of Railways has been informed that locally produced HSD meets all performance specifications required for Pakistan Railways’ engines, with flash point being the only non-quality parameter in question.
Efforts to address this issue have been ongoing, but the anomaly persists, affecting the oil industry and Pakistan Railways’ strategic assets.
Published in Dawn, June 10th, 2024