Auto Industry Wants 2 Years to Switch to Euro 5

Local auto industry has sought 2 years to switch over to Euro-5 fuel or exclude existing models under production in the country, according to a report published by Business Recorder.

On June 4, 2020, Cabinet Committee on Energy (CCoE) disallowed Oil Marketing Companies (OMCs) to import petrol below Euro-5 grade after August 1, 2020. The decision of CCoE was endorsed by the federal cabinet on June 23, 2020.

Related: Pakistan to Officially Adapt Euro-5 Standards from August 2020

CCoE supported switching over from current Euro-2 fuel and observed that it is need of time to adopt Euro-5 fuels in the country as many countries have already shifted to Euro-5 & Euro-6 due to lesser sulfur content and lower emission, which would ultimately facilitate in reducing negative environmental impact.

However one of the top Japanese car assembling companies, in a letter to the Secretary Industries and Production said that currently Pakistan’s regulatory emission requirements under SRO 72(KE) of May 16, 2009 is equivalent to Euro-2 which provided two-years to automotive industry to change over from Euro Zero to Euro-2. According to the company:

“We understand that due to common White Oil Pipeline Project (WOPP) and awaited facility upgrades at few local refineries, it may not be possible to ensure Euro IV/V fuel at retail stage across Pakistan. Surely, Government would be working to devise mechanisms for assuring fuel quality at retail stage for end users.”

The company further asserted that fuel quality is directly linked with vehicles emissions, fuel efficiencies, engine performance and durability. Often unchartered fuel ingredients/additives like metallic RON boosters result negatively on high tech engine performance. Also, parts supply chain/engineering change management in automotive industry is complex and depend on long-term forecast, therefore, an appropriate lead time is imperative for extensive testing of engine performance based on fuel available at retail stage.

Related: Auto Sector Demands Tax Reduction

The automaker has assured its support to upgrade Pakistan ambient air quality by upgrading vehicles and fuel to Euro-5 level. However, considering relationship between fuel quality and automotive vehicles, the company has requested the government to directly engage auto industry in emission/ fuel quality regulatory requirement and share latest status for long-term planning and parts supply chain management and provide sufficient lead time, at least 2 years, to switch over according to fuel quality available at retail stage across Pakistan or exclude existing models under production within country.

Full story: Business Recorder

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