Energy sector is the backbone of any economy, more so in case of Pakistan but unfortunately the core challenges we face today in the realm of economy stem from ill planning and mismanagement of the energy sector.
It is, therefore, good to know that the Oil Refineries Policy for Upgradation of Existing/ Brownfield Refineries with some amendments was approved by Cabinet Committee on Energy on Tuesday.
This badly needed policy took more than four years in the making and final approval was delayed on one pretext or another.
The Policy was finally notified on August 17, 2023 but unfortunately had some anomalies which were not acceptable to the refineries. After intense and prolonged consultation between the government, refineries, independent financial and legal advisory firms, the Policy was appropriately amended and approved by Cabinet Committee on Energy in a meeting held chaired by Minister of Energy Muhammad Ali.
The last step needed now is it’s approval and ratification by the Cabinet which we hope would be done in the next few days.
The Policy will enable the Oil Refineries to undertake major upgradation projects to not only comply with Euro – V specifications but also increase production of deficit products of petrol and diesel by 99 % and 47 % respectively and also reduce production of furnace oil by 78%, which because of drastically reduced demand in recent years often results in storage constraints forcing the refineries to reduce capacity utilisation.
The refineries upgradation will bring in investment of US $ 5 – 6 Billion and not only result in cleaner environment friendly fuels but also major savings of precious foreign exchange.
