Energy body approves new refinery policy

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The Cabinet Committee on Energy (CCOE) on Tuesday approved the new refinery policy where it enhanced the limit on withdrawing money from an escrow account from 25% to 27.5%.

Pakistan Refinery Limited (PRL) has already signed an agreement with the Oil and Gas Regulatory Authority (Ogra) under the new refinery policy. However, other refineries refused to strike any deal with the regulator and raised several issues like the continuation of 7.5% deemed duty collection on diesel sales after upgrading their plants.

Other issues of concern for the refineries included the tax exemption on incremental capital expenditure (capex) to be deposited in the escrow account, project time and cost overruns. At a meeting held on Tuesday, the CCOE raised the cap on the withdrawal of money from the escrow account from 25% to 27.5%. This money will be spent on upgrading the refineries.

Read more: https://tribune.com.pk/story/2455684/energy-body-approves-new-refinery-policy

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