Karachi: Three major refineries – Attock Refinery, National Refinery and Synergeiko Refinery – have informed the Oil and Gas Regulatory Authority (OGRA) that they are not delaying the signing of upgrade agreements.
The clarification came after Ugra proposed reducing duties 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 modernizing their facilities. They stated that agreements, including those related to upgrades and escrow accounts, have already been finalized.
But they said the $6 billion in improvements depend on resolving the sales tax issue on petroleum products. “We need an urgent solution to the sales tax issue before these agreements can move forward,” the refineries said.
The refineries also asked Ugra and the Ministry of Energy to help solve the problem and requested an extension of the deadline for signing the agreements. They pointed out that the discussions that took place during the Private Investment Facilitation Council meeting on October 22, 2024 were positive, but the problem remains unresolved.
Meanwhile, Pakistan Refinery Company Limited has already signed the upgrade agreement with Ugra, while Pak Arab Refinery (Parco) is still working on a study to finalize its project.
The refineries stressed that resolving these issues is crucial to moving forward with upgrades, which are essential for Pakistan’s energy needs and economic development. They also noted that Ogra had earlier sought their input on reducing fees imposed for non-compliance.