PRL signs an agreement with Ogra to avail Refineries Incentives

Staff Report

Pakistan Refinery Limited (PRL) has signed an agreement with the oil and gas regulatory authority (Ogra) to avail incentives under the new refinery policy for the expansion of the project.

However, other refineries have not agreed to sign an agreement so far.

The deadline of November 16 has approached but the remaining refineries are not ready to sign the agreement.

 Regarding ‘Brownfield Refinery Policy’ Ogra said that it is being clarified that numerous meetings have been held between the Oil and Gas Regulatory Authority (OGRA), refineries, and the representatives of the Ministry of Energy, Petroleum Division.

The Brownfield Refinery Policy is required to be signed enabling the existing refineries to proceed with their projects to upgrade to produce Euro-V compliant fuels, which is a project of national strategic importance.

It is pertinent to mention here that the final agreed draft of the agreement was shared with the Refineries on November 8, 2023, keeping in view the policy guidelines of the Federal Government for execution, as the Refineries have to sign the agreement with OGRA.Refineries Policy: No import duties, sales tax on crude import

However, some of the Refineries have raised certain objections that are found beyond the policy guidelines of the Federal Government and, therefore, not considered and the same has been raised with the federal government.

The refineries have been advised to sign the agreed draft agreement within the due date, besides, one of the refineries is signing an agreement with OGRA today.