Staff Report
ISLAMABAD:
Oil Companies Advisory Council (OCAC) has raised voice for a separate policy for the Oil Marketing Companies (OMCs) to address their issues and assured the petroleum division of its full support in this regard.
OCAC chief Syed Zawar Haider, in a letter dated August 26, 2021 to Secretary Petroleum Dr Arshad Mahmood, has asked to devise a separate policy for Oil Marketing Companies (OMCs) to address their issues, specifically with regards to investment in infrastructure, periodic review of OMCs margins, phased deregulation etcetera.
OCAC chief executive officer (CEO), on behalf of downstream industry, has also assured the petroleum division of full cooperation and support of OCAC in this regard.
“We feel that a separate policy is required for oil marketing companies to address their issues, specifically with regards to investment in infrastructure, periodic review of OMCs margins, phased deregulation etc. Should you need any inputs, we are available to extend our full support to the Ministry of Energy, Petroleum Division for the same,” said the OCAC letter.
Appreciating the government’s efforts to address the industry issues as well as its serious commitment to developing a consistent policy framework for meeting ongoing and upcoming challenges to ensure proper infrastructure planning given the growing demand of petroleum products, OCAC chief said that the oil industry has been facing various challenges over the past few years which were brought to the attention of relevant forums/authorities by CACA on numerous occasions. However, the incentives for the refining sector have a complementary impact on other sectors of downstream industry, that is the consequent investments and upgrades will strengthen the overall industry in terms of logistic advantage (by increasing local supplied) increasing storage capacity, reducing demurrage costs and reducing working capital requirements for OMCs.
About the draft Refining Policy 2021, the OCAC chief while expressing his confidence in the draft Refining Policy 2021, has said that the proposed Refining Policy 2021 would bring about a new era for refining, eventually cascading its positive effects to other sectors of the economy and lead Pakistan further on the path of economic growth.
“It has adequately addressed the need to attract greenfield and brownfield investments in the refining sector. The policy incentivizes investors by providing income tax holidays, tariff protection and customs duty exemption on import of plant/machinery while also ensuring commitment for upgrades from the refineries,” said OCAC chief’s letter.
