Govt notifies amended Brownfield Refinery Policy, paving way for $5 billion upgrades

Profit reported that the government has notified an amended Brownfield Refinery Policy 2023, a 42-page document. The notified text folds in amendments from February 2024 and August 2026, targeting around $5 billion of delayed refinery upgrades for domestic Euro-V grade petrol and diesel. Local refineries must set up Refinery Upgradation Accounts within 45 days of the September 10, 2026 notification.

Officials cited by Profit expect all five refineries to conclude Upgrade Agreements by October 1, 2026, with a signing event involving Prime Minister Shehbaz Sharif. Missing that date would lower the deemed duty on high-speed diesel to 2.5%, with full withdrawal scheduled for November 15, 2026. Officials put the daily financial effect at about Rs7.5 million for Attock Refinery and Rs10 million for National Refinery, after the earlier cut from 7.5% to 5%.

Topline Securities said sales tax that refineries could not claim under the exempt status will be refunded through the Inland Freight Equalisation Margin for FY26 and until a permanent fix is found. The brokerage also dismissed rumours of a ceiling or floor on gross refining margins under the amended policy. Refineries will give up incentives claimed under the 2023 framework and become eligible again for seven years from signing. Profit called the notification positive for PRL, NRL and ATRL, given their earlier upgrade delays.