Big change likely in oil sector, orders to speed up implementation of new refining policy

The government has decided to accelerate the process of upgrading oil refineries to strengthen the country’s energy sector, reduce dependence on imported fuel and promote foreign investment.

The meeting of the Cabinet Committee on Energy chaired by Prime Minister Shehbaz Sharif reviewed the improvement of oil refineries, reforms in the energy sector and implementation of policy measures. The meeting was attended by Federal Ministers Ahad Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, Ahsan Iqbal and senior officials.

During the meeting, the Prime Minister said that the upgrading of oil refineries is an important pillar of Pakistan’s energy security system. He said that modern refineries will help the country reduce its dependence on imported fuel while also making it possible to provide environment-friendly and better quality fuel.

The Prime Minister directed the relevant institutions to further accelerate the ongoing reform process in the energy sector and maintain effective communication with all stakeholders.  He clarified that timely implementation of the new policies will be ensured and no delay or negligence will be tolerated.

Shahbaz Sharif also stressed on improving the performance of the Oil and Gas Regulatory Authority (OGRA) and introducing reforms as per the needs of the market. He said that effective measures are indispensable for promoting transparency, competition and investment in the energy sector.

In the meeting, the Prime Minister also issued instructions to organize road shows in Qatar, Saudi Arabia and other Gulf countries to convey the amended Pakistan Oil Refining Policy 2023 to global investors.

The Prime Minister appreciated the efforts of the Minister of Petroleum and his team regarding the amendments in the refining policy and said that Pakistan will have to meet future needs through long-term planning in the energy sector.

He also directed to increase the strategic reserves of petroleum products in the country so as to reduce the impact of price fluctuations and emergencies in the global market.

According to experts, modernization of refineries and reforms in the energy sector can support Pakistan’s industrial activities, however, for this purpose, consistent policy implementation, investment protection, and institutional reforms will play an important role.