KARACHI: The production of petroleum solvents in Pakistan has risen sharply, with the product allegedly being mixed with petrol to maximise profits, as it remains exempt from the petroleum levy (PL), according to industry officials and data seen by The News.
Solvents, extracted from crude oil, are produced locally in refineries and also imported. The product is considered a lower-quality petrol substitute, with a research octane number (RON) of 75-90, compared to standard petrol’s RON grade of 90 or higher, and high-octane fuels with even higher RON ratings.
Documents reviewed by The News show that solvent production has surged over the past three years, with local refineries and oil marketing companies (OMCs) allegedly engaged in both large-scale production and sales to maximise margins.
Industry sources said the absence of PL on solvents makes them significantly cheaper, creating incentives for their use in petrol blending. They alleged that refineries offer OMCs substantial quantities of solvents in exchange for uplifting high-speed diesel (HSD).
According to oil sector data, combined solvent production was 39,470 metric tonnes in FY2022-23, increased to 55,000 metric tonnes in FY2023-24, and doubled to 105,000 metric tonnes in FY2024-25.
Sources said the figures suggest that the high output is not solely serving legitimate uses. While solvents are primarily employed in the paint industry, demand from that sector is limited, they noted.“The excessive quantity is finding its way into the unfair practice of petrol blending,” one source said, adding that the adulterated fuel delivers higher returns.
Industry representatives urged the Oil & Gas Regulatory Authority (Ogra) to recommend that the government impose PL on solvents to curb the practice. They also warned that the low-RON blended product can damage car engines designed for fuels with a RON of 90 or higher.They further called on the government to introduce mechanisms requiring refineries to disclose solvent sales and for OMCs to report corresponding purchase and sale records.
