Last week, the Petroleum Division presented the draft Pakistan Oil Refining Policy to the Cabinet Committee on Energy (CCoE). The policy was presented on August 20, 2021, to the committee for consideration and approval.
However, now there are reports that Planning Minister Asad Umar and Maritime Affairs Minister Ali Zaidi have ‘blocked’ the incentives proposed in the policy, Business Recorder reported on Wednesday.
The draft policy reportedly included proposals for the upgradation of existing refineries to produce Euro-V specification products. There were also suggestions pertaining to incentivizing potential investors to establish new and deep conversion refineries.
While debating on the merits of the policy, Zaidi pointed out that the business of Single Point Mooring (SPM) was relevant, and another related policy was already being deliberated upon by the stakeholders.
He also raised issues with the fiscal incentives for new investors, saying that these proposed in Pakistan Oil Refining Policy 2021 would be at the cost of Sea Ports.
CCoE Chairman, Asad Umar, expressed concern over the policy suggestion of offering tariff protection incentives to existing refineries for upgradation. He said that such incentives should only be offered after the Commercial Operation Date (COD) of projects.
At the end of the discussion, the CCoE directed the Petroleum Division to review the policy and submit the revised draft to CCoE for consideration.