WEB DESK
The petroleum ministry has devised a new policy for refineries in a bid to boost refining capacity which can ultimately help in bringing down petrol and diesel prices by up to Rs20.
As per the new policy, the government will extend tax exemptions of up to 20 years on the import of refinery machinery for upgrading old refineries and setting up new ones.
However, it will only be applicable to the refinery units possessing the capacity to refine more than 100,000 tons of oil per day.
It is pertinent to note that existing refineries are mostly producing furnace oil.
Meanwhile, all refineries except PARCO import 40% of petrol and diesel instead of refining it locally, which adds to the cost of up to $12 per cargo.
If the capacity of refineries is modified, the price of petroleum products could also be reduced by Rs15 to Rs20 per liter.
The federal cabinet will approve the new policy.
