KARACHI: Three major refineries—Attock Refinery, National Refinery, and Cnergyico Refinery—have told the Oil and Gas Regulatory Authority (Ogra) that they are not delaying the signing of upgrade agreements.
This clarification came after Ogra proposed reducing the deemed duty on high-speed diesel (HSD) for refineries that fail to meet the requirements of the Brownfield Refining Policy.
In a joint letter to Ogra, the refineries explained that they are following the timelines set by the policy and are committed to upgrading their facilities. They mentioned that agreements, including those for upgrades and escrow accounts, have already been finalized.
However, they said the $6 billion upgrades depend on resolving the sales tax issue on petroleum products. “We need an urgent solution to the sales tax problem before these agreements can move forward,” the refineries stated.
The refineries also asked Ogra and the Ministry of Energy to help resolve the issue and requested an extension of the deadline for signing the agreements. They pointed out that discussions during the Special Investment Facilitation Council (SIFC) meeting on October 22, 2024, were positive, but the problem remains unresolved.
Meanwhile, Pakistan Refinery Limited has already signed its upgrade agreement with Ogra, while Pak-Arab Refinery (Parco) is still working on a study to finalize its project.
The refineries stressed that resolving these issues is critical for moving forward with the upgrades, which are essential for Pakistan’s energy needs and economic development. They also noted that Ogra had earlier sought their input on reducing deemed duty for non-compliance.
