Pakistan clears path for Euro-5 fuel production

ISLAMABAD: The Cabinet Committee on Energy has approved proposed amendments to the Pakistan Oil Refining Policy 2023, aimed at modernizing the country’s oil refineries, enhancing energy security, and enabling the production of cleaner Euro-4 and Euro-5 standard fuels.

Prime Minister Shehbaz Sharif, while chairing the committee meeting on Tuesday, said upgrading Pakistan’s oil refineries was essential to reduce dependence on fuel imports and ensure the availability of environmentally friendly petroleum products.

During the briefing, it was informed that upgrading existing refineries was essential to boost their production capacity. The production of Euro-4 and Euro-5 standard fuels is necessary to fulfill Pakistan’s international environmental commitments, reduce air pollution, and provide better quality fuel to the public.

The prime minister directed the introduction of reforms to improve the performance of the Oil and Gas Regulatory Authority (OGRA) and ensure market-based competition, transparency, and increased investment in the energy sector.

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He stressed that after approval of the amended policy, its implementation must be carried out effectively and within the given timeframe. He directed relevant ministries and institutions to maintain close coordination with stakeholders to speed up the reform process.

Prime Minister Shehbaz reaffirmed that the government would continue working on sustainable energy reforms, adoption of modern technology, and creating a favourable environment for investment.

He also directed authorities to organize roadshows in Qatar, Saudi Arabia, and other Gulf countries to promote investment opportunities under the amended Pakistan Oil Refining Policy 2023, particularly for brownfield refineries.

The prime minister appreciated the efforts of the Petroleum Ministry and its team in finalizing amendments related to brownfield refineries and also instructed authorities to enhance the country’s strategic petroleum reserves.

Officials said the amendments for brownfield refineries aim to ensure production of eco-friendly Euro-5 compliant petrol and diesel while reducing the production of furnace oil and other low-quality petroleum products.