Pakistani refineries produce `zero-euro` quality oil, whereas Indian refineries produce Euro-3 and Euro-4 quality oil, which is cleaner and more environmentally friendly.
Pakistan is still preparing a roadmap to introduce Euro-2, Euro-3 and Euro-4 for clean energy, The Express Tribune reported.
"Pakistani refineries have been tasked to produce Euro-2 quality diesel by July 2014 and therefore the government wants to shelve the plan of oil trade with India till then," an unnamed official said.
Another reason for the decision is that Pakistan has inked an oil supply contract with Kuwait Petroleum Corporation that is valid till 2014, the official said.
Pakistan also plans to meet only 20-25 per cent of its needs for petroleum products from India to avoid over-reliance due to security concerns. "We will continue to import oil from Kuwait and other Gulf countries in a bid to ensure secured supplies," a government official said.
Another official of the Engineering Development Board said the use of Euro-3 and Euro-4 fuels would cause a technology shift and it would be difficult to run existing vehicles on fuel produced in India. "Different specifications of petroleum products have barred the countries from reaching any agreement," a senior unnamed government official said.