Oil Industry Protests Pakistan Railways' Tender Specifications Favoring Imported Diesel

The oil industry is up in arms against Pakistan Railways' tender specifications for high-speed diesel (HSD) procurement, which allegedly favor imported products over local refineries' output. Adil Khattak, Chairman of Oil Companies Advisory Council (OCAC) and CEO of Attock Refinery Ltd, has lodged a formal complaint with the government against Pakistan Railways' tender requirements.

In a letter to Pakistan Railways' Secretary and Chairman Mazhar Ali Shah, Khattak highlighted that the tenders mandate a minimum flash point of 66 degrees Celsius, a specification that only applies to imported HSD. In contrast, local refineries produce HSD with a minimum flash point of 54 degrees Celsius, which is approved by the authorities.

The industry is concerned that this tender specification will lead to a substantial foreign exchange cost and unfairly favor imported diesel over locally produced diesel. The oil companies are contesting the tender, seeking a review of the specifications to allow local refineries to participate in the procurement process.