Oil Refinery Policy 2023 has at last been approved at initial stage

Engineering Post Report

The much awaited Pakistan Oil Refining Policy 2023 has at last been approved after being in doldrums for quite some time for Up gradation of the Existing Brownfield Refineries with some amendments.

The so approved new Oil Refining Policy will enable the oil refineries to undertake major up gradation projects to not only comply with Euro V specifications but also increase production of deficit products of petrol and diesel by 99 percent and 47 percent respectively and also reduce the production of furnace oil by 78 percent which because of drastically reduced demand in recent years often results in storage constraints forcing the oil refineries to resort to reduction capacity utilization.

The oil refineries up gradation was most likely to bring in an investment of US $ 5-6 billion and also not only resulting in providing clear environment-friendly fuels but also major foreign exchange savings.

The policy offers various incentives to the oil refineries for upgrading their facilities such as deemed duty, tax exemption, and output flexibility. Under the policy, the oil refineries have to sign an up gradation agreement with the Oil and Gas Regulatory Authority (OGRA) within six months after the policy was notified failing in doing so they would be facing penalties and restrictions.