Islamabad: The government’s new petrol formula has put refineries and billions of dollars in upgrade projects at risk.
According to details, Pakistan’s decision to suddenly change the formula for determining petrol prices is likely to cost oil refineries around Rs 49 per liter, while the investment of $ 5 to 6 billion allocated for the proposed upgrade of refineries may also be at risk.
The oil industry has warned that the decision comes just weeks after the government signed agreements to modernize the country’s old oil refineries, which is likely to affect the refinery modernization plans.
It should be noted that the federal cabinet on October 30 approved a revised methodology for determining the prices of petroleum products.
Under which refineries will have to hand over to the government the difference between the actual import cost of petrol and the ex-refinery price determined based on pre-war prices.
