Pakistan Moves Ahead With Refinery Upgrade Plan
Pakistan is moving forward with plans to modernise its oil refining sector, with all five refineries now ready to sign agreements for major upgrades.
The Petroleum Division said the companies expect to sign the agreements at the beginning of next month. The planned projects could attract more than $6 billion in investment.
The government hopes the Pakistan oil refineries upgrade programme will strengthen energy security and reduce the country’s dependence on imported fuel.
Federal Petroleum Minister Ali Pervaiz Malik held separate meetings with the management of all five refineries. Officials reviewed the refinery policy, financial performance and the country’s wider energy situation.
Euro-5 Fuel Production Planned
Malik said modernising Pakistan’s refineries remains important for the long-term sustainability of the energy sector.
He said the planned upgrades would allow local refineries to produce Euro-5 standard fuels. The move could also reduce Pakistan’s need to import petrol and diesel.
Higher domestic production may also ease pressure on fuel prices. At the same time, it could help reduce the country’s import bill.
The petroleum minister assured refinery operators that the government would continue working with the industry to resolve policy-related issues.
He also pledged support for measures that can help companies modernise their facilities and improve their operations.
Meanwhile, the management of Pakistan Refinery Limited (PARCO) briefed Malik on progress related to the proposed Oil City in Hub.
Latest Petrol and Diesel Prices
The government has also recently adjusted domestic fuel prices.
The Oil and Gas Regulatory Authority (OGRA) issued a notification on Thursday announcing reductions in the prices of petroleum products.
Petrol became 50 paisa cheaper per litre. The new price stands at Rs342.60 per litre.
The government also reduced the price of high-speed diesel by 19 paisa per litre. The new rate stands at Rs371.61 per litre.
The latest reduction comes as consumers continue to face high fuel costs across the country.
Dealers Receive Higher Margins
Earlier, Pakistan’s Economic Coordination Committee approved an increase in the dealers’ margin on petrol and diesel.
The margin increased by Rs1.34 per litre. The decision aimed to address demands from fuel station operators.
The refinery upgrade programme could bring another major change to Pakistan’s fuel market.
If the projects move forward as planned, the Pakistan oil refineries upgrade programme could increase local fuel production, improve refining capacity and strengthen the country’s energy security over the coming years.
