ISLAMABAD – The government is working on a multi-pronged strategy toincrease production of petroleum commodities by revamping the existing oilrefineries and opening up the sector for private companies to create anenvironment of competition.
According to a senior official of the Petroleum Ministry, three oilrefineries, out of five existing facilities are inefficient, and thegovernment has announced a 10-year tax exemption for them to increase theircapacity.
The given concession would also be applicable for new deep conversion oilrefineries.
He said an unprecedented incentives package is in place for setting up newdeep conservation oil refineries, enabling them to import machinery,vehicles, plants and equipment and other materials.
Recently, he said, the government had given a roadmap forease-of-doing-business in the petroleum sector, removing red-tapism ingetting approval for investment and advancements in different fields.
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He said a policy is being worked out, under which procedural hitches arebeing removed to facilitate investors in the oil refining and marketingsector.
Answering a question, he said, the overall storage capacity of Motor Spirit(MS) and High Speed Diesel (HSD) oil has witnessed around 13.07 percentincrease during the fiscal year 2018-19 as compared to the correspondingyear.
He said the storage capacity for both the MS and HSD oil has been increasedfrom 1,712,691 MT to 1,936,550 MT during the period.
