MODEL FOR SUSTAINABLE PROCUREMENT TO PREVENT ADULTERATION IN IMPORTED FUEL OIL ARSHAD H ABBASI 1 , FAREEHA MEHMOOD 2 & AYESHA WASTI 3 1 Senior Advisor of Water and Power at Sustainable Development Policy Institute (SDPI), Islamabad, Pakistan 2 Research Assistant in Water & Energy Unit at Sustainable Development Policy Institute (SDPI), Islamabad, Pakistan 3 Project Assistant in Water & Energy Unit at Sustainable Development Policy Institute (SDPI), Islamabad, Pakistan ABSTRACT Pakistan is facing an unprecedented energy crisis due to its undiversified energy mix and increased reliance on fuel oil. At present more than 35% of the power is generated using imported Residual Fuel Oil (RFO) and the poor quality of RFO being used for power generation directly affects the electrical output in terms of increased cost of generation as compared to notified cost, which then has to be recovered through subsidy and also increases the operational and maintenance cost of power plants. Thus, this brief proposes a model for Pakistan to procure petroleum products in a sustainable manner hence enabling to monitor the quality & quantity of imported products to maximize the benefits. The integration of web based approach in this model would further make the process transparent and competitive, thereby addressing the adverse impacts of the prevalent energy crisis. KEYWORDS: Petroleum Products, Energy Crisis, Power Plants Efficiency, Fuel Oil Quality, Sustainable Procurement INTRODUCTION Pakistan has been suffering from an unprecedented energy crisis which has been crippling the nation’s economy and lives of millions of people since 2007(Pakistan Energy Outlook, 2012). The crisis is worsening by each day due to undiversified energy mix as more than 65% of electricity is hydrocarbon based energy production (Pakistan Energy Outlook, 2012). A large portion of Pakistan’s hydrocarbon based energy production-(both, for transportation and electricity) was converted from oil to gas, considering that the country was blessed with abundant domestic gas reserves and that it should avoid expensive oil imports (See Error! Reference source not found.). Figure 1: Use of Gas and RFO for Power Generation Source: World Bank, 2010 International Journal of Chemical & Petrochemical Technology (IJCPT) ISSN 2277-4807 Vol. 3, Issue 2, Jun 2013, 25-30 © TJPRC Pvt. Ltd.