PSO, Pakistan State Oil, start importing Euro-V petrol in Pakistan with the approval of the government of Pakistan.
PSO, Pakistan State Oil, start importing Euro-V petrol in Pakistan with the approval of the government of Pakistan. Pakistan State Oil (PSO) has got the government’s approval to import Euro-V standard fuel as the state-run oil company will get the ball rolling of the partial imports this month from Kuwait Petroleum Corporation on a trial basis.
Keeping in view the Petroleum Division, all the petrol imports of the country will have to be Euro-V in accordance with the standards, with effect from the third quarter of this year while the deadline for Euro-V diesel imports has been set to January 2021.
The government-to-government contract for imports of fuel between the two state-run companies is in place for the past 40 years and Pakistan has been getting a 60-day interest-free credit facility since 2000. Since 2017.
Pakistan has been importing Euro II high-speed diesel as the country meets 40% of its demand through imports; the remaining 60% is met through domestic refineries.
PSO has taken care of 22% of the country’s total high-speed diesel demand with a 55% share in total imports.
Besides this, the country’s petrol requirement is met through 70% imports and with 30% domestic production.
However, Pakistan will keep on importing Euro-II diesel from Kuwait until December 2020 as PSO is authorized to take the delivery of 2-2.3 million tons this year.
Regarding denying Kuwaiti supplies, Pakistan is using a 60-day interest-free credit facility provided by Kuwait for high-speed diesel import since 2000, which would be discontinued. Leaving Kuwait Petroleum may also result in releasing around $150 million of payment immediately to Kuwait Petroleum for the 60-day credit.