ISLAMABAD: The oil industry has raised objections against Pakistan Railways’ tender specifications, which effectively exclude high-speed diesel (HSD) from local refineries and favor imported products, incurring significant foreign exchange costs.
Adil Khattak, Chairman of the Oil Companies Advisory Council (OCAC) and CEO of Attock Refinery Ltd, has formally lodged a complaint with the government regarding the tender for HSD procurement. The tender specifications, contested by various oil marketing companies (OMCs), demand a minimum flash point of 66 degrees Celsius, suitable only for imported HSD. Local refineries, however, produce HSD with an approved flash point of 54 degrees Celsius.
“This requirement excludes locally produced diesel from Pakistan Railways, making it reliant on imported fuel,” Mr. Khattak highlighted in a letter to Pakistan Railways’ Secretary and Chairman Mazhar Ali Shah. Despite multiple communications and meetings, the issue remains unresolved, adversely affecting local refineries.
Mr. Khattak emphasized that other countries, including the US, Canada, EU, Japan, China, South Korea, India, and South American nations, utilize HSD with lower flash point specifications than Pakistan’s local standards. Indian Railways, for instance, accepts a flash point of 35 degrees Celsius.
He further noted that Pakistan Railways’ own technical committee confirmed in May 2021 that a 54-degree flash point HSD is suitable. However, the tender specification has not been adjusted, leading to unnecessary dependence on imported diesel and loss of foreign exchange.
Efforts to resolve the issue with previous Railways ministers and CEOs have been unsuccessful. The Ministry of Railways has been informed that locally produced HSD meets all performance requirements for Pakistan Railways’ engines, except for the flash point, which primarily affects handling safety rather than engine performance.
Pakistan Railways Chairman Mazhar Ali Shah did not respond to requests for comments.
Story by Khaleeq Kiani
