KARACHI: The Petroleum Division has clarified that any petroleum products or petrochemicals with a flashpoint below ninety-three degrees centigrade fall under the definition of petroleum according to the Petroleum Act 1934. This means that licenses are required for their import, transport, storage, use, and sale.
The Department of Explosives stated that, as per the Petroleum Act 1934, petroleum is defined as “any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture (liquid, viscous, or solid) containing any liquid hydrocarbon.” Amendments made to Section 2(1) Class (h) of the Petroleum Act in 2023 define three classes of petroleum:
Petroleum Class A: Flashpoint below twenty-four degrees centigrade.
Petroleum Class B: Flashpoint between twenty-four and fifty-five degrees centigrade.
Petroleum Class C: Flashpoint between fifty-five and ninety-three degrees centigrade.
The Petroleum Division has emphasized that under Section 3 of the Petroleum Act 1934, these petroleum products must not be imported, transported, or stored without adhering to the rules made under Section 4 of the Act. The Petroleum Rules 1937, enforced under this Act, require licenses in Form ‘L’ or ‘M’ for the import and storage of petroleum products.
A license fee of Rs 30,000 is required for storage capacities up to 5 lac liters and Rs 80,000 for capacities above 5 lac liters for each product under Form ‘L’ of the Petroleum Rules 1937. For Form ‘M’, a fixed fee of Rs 25,000 is required for any licensed quantity, as per SRO No. 42KE/2020 dated September 29, 2020.
The clarification aims to ensure compliance with licensing requirements and proper handling of petroleum products to enhance safety and regulatory adherence.