ISLAMABAD: A parliamentary panel on Wednesday was apprised that the Saudi government’s pledge to set up an ultra oil refinery will be matured after the finalization of the new proposed Pakistan Oil Refining Policy, 2021.
The Public Accounts Committee (PAC) met under the chairmanship of Noor Alam Khan. The committee examined the audit reports of the Petroleum Division for the year 2019-20.
Responding to a question regarding deferred payment on crude from Saudi Arabia at five percent interest charged by a foreign bank, Managing Director (MD) Pakistan State Oil (PSO) Syed Muhammad Taha said that Pakistani refineries are importing crude oil from Saudi Arabia which is 30 percent of the total petrol consumption as 70 percent in import as refined product due to capacity constraint and outdated local refineries.
Answering another question from Mushahid Hussain Sayed about import of oil from Russia at cheaper rates, the PSO MD said that no trade agreement between Pakistani and Russian companies existed unlike Indian companies which signed such agreements in 1951.
The MD PSO further said that the PSO, Pak-Arab Refinery Limited (PARCO), National Refinery Limited (NRL), and Saudi Aramco had signed a $1.2 billion up-gradation of refinery and the Saudi government also expressed interest in setting up a refinery in Gwadar or Hub (Balochistan).
He was of the view that there was yet to determine rate of return for the proposed oil refinery required around $8 billion investment. He said all incentives for new players were in new refinery policy which is yet to be approved by the federal cabinet.
Earlier, the PSO MD informed the committee members that the recent spike in prices of petroleum products in Pakistan had multiple reasons. He said the country is importing refine products and had to pay $2 to $3 million worth of premium to international traders. Oil and Gas Regulatory Authority (OGRA) Chairman Masroor Khan said that the PSO had to give $58 per barrel premium on High-Speed Diesel (HSD) due to dollar rupee parity this time.
Copyright Business Recorder, 2022
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