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Saturday December 21, 2024

OMAP demands action on illegal hydrocarbon solvents

By Our Correspondent
August 28, 2024
A representational image showing a worker at a fuel station. — AFP/file
A representational image showing a worker at a fuel station. — AFP/file

KARACHI: The Oil Marketing Association of Pakistan (OMAP) is calling on the government to take strong action against the illegal import and distribution of hydrocarbon solvents.

In a letter addressed to the Ministry of Energy (Petroleum Division), OMAP expressed serious concerns about the widespread illegal use of hydrocarbon solvents in gasoline adulteration. The letter highlights reports that these solvents are being used to tamper with fuel, causing significant harm to the industry and the nation.

OMAP emphasized that the sale of adulterated fuel from illegal stations damages the reputation of legitimate oil companies. Although these stations operate outside official channels, their actions cast a shadow over the entire industry, including those companies that adhere to regulations.

The association also noted that if these solvents enter the supply chain of recognized oil companies, they are difficult to detect with current testing methods. This makes the problem a hidden and pervasive threat to fuel quality and industry integrity.

The environmental impact of these solvents remains largely unknown, but their unregulated use is likely harmful. They negatively affect combustion engines, potentially leading to engine failures and reduced vehicle lifespan, which in turn undermines public trust in fuel products. Moreover, the presence of adulterated fuel in the market results in significant financial losses for legitimate oil companies and disrupts fair competition.

OMAP pointed out that illegal imports and sales of these solvents deprive the government of valuable revenue that would otherwise come from legitimate gasoline sales. This financial loss is particularly concerning given the current economic situation.

Each litre of solvent replacing gasoline results in a minimum loss of Rs60 in petroleum development levy (PDL), not to mention the potential loss of customs duty and pricing differences. This loss could amount to tens of billions of rupees monthly. T0he handling of these dangerous solvents by unauthorized entities poses severe safety risks, including the potential for catastrophic accidents.

OMAP has urged the Ministry of Energy to take immediate and effective measures to stop the illegal import and distribution of these harmful solvents.