Govt announces revised oil refinery policy

New policy aims to propel sector upgrades and eco-friendly fuel production

In a significant development, the Ministry of Energy’s Petroleum Division has officially announced the revision of the oil refining policy, following its endorsement by the Cabinet on February 15, 2024.

This revision comes after initial recommendations from the Cabinet Committee on Energy on February 6, 2024, and addresses key concerns raised by the oil refineries regarding the viability of their proposed upgrade projects.

Initially introduced on August 17, 2023, the policy has undergone amendments to accommodate the refineries’ feedback, facilitated by extensive consultations involving government officials, refinery representatives, and independent financial and legal experts.

Adil Khattak, the chairman of the Oil Companies Advisory Council (OCAC) and CEO of Attock Refinery Ltd, highlighted the positive impact of the amended policy.

It is expected to enable significant upgrades across the sector, aligning operations with Euro-V standards, enhancing petrol and diesel production by 99% and 47% respectively, and significantly reducing furnace oil production by 78% due to its declining demand and storage challenges.

The policy revision is poised to attract investments between $5-6 billion into the sector, promoting the production of cleaner, environment-friendly fuels and yielding substantial foreign exchange savings.

Khattak also emphasized the policy as a landmark achievement of the caretaker government, expressing optimism for its thorough implementation.


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