Attock Refinery CEO estimates petrol pricing change could cost refineries Rs49/litre
Adil Khattak said the estimated impact includes Rs35 per litre from pricing adjustments and Rs14 from customs duty recovery, amid concerns over refinery upgrades.
At a glance
- Adil Khattak estimates the pricing change could cost refineries Rs49 per litre.
- The estimate includes Rs35 per litre from pricing adjustments and Rs14 from customs duty recovery.
- Four refineries signed upgrade agreements on September 24.
Key facts
- Estimated refinery impact
- Rs49 per litre
- According to Attock Refinery's chief executive
- Pricing adjustment component
- Rs35 per litre
- Pre-war premiums and incidentals
- Customs duty recovery component
- Rs14 per litre
- Diverted towards reducing the Petroleum Levy
Attock Refinery Limited ATRL chief executive Adil Khattak told the government that its October 30 change to Motor Spirit (petrol) pricing could cost domestic refineries an estimated Rs49 per litre.
Khattak attributed Rs35 per litre of the estimated impact to including pre-war premiums and incidentals in the pricing mechanism. He said a further Rs14 per litre would come from redirecting refineries' customs duty recovery towards reducing the Petroleum Levy.
Khattak said the change raised concerns about refinery upgrade projects with estimated investment of USD5-6 billion. The Brownfield Refineries Upgradation Policy provides for proceeds from the 10% customs duty to be deposited in dedicated refinery accounts to help finance upgrades, he said.
Four refineries signed Upgradation Agreements on September 24, while PARCO was expected to join the programme shortly. Khattak urged the government to revisit the pricing decision and engage with refineries.
Attock Refinery shares closed at Rs1,088.78 on Friday, October 30, down Rs31.66, or 2.83%.
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This story was produced by the Investify News Desk with automated tools and checked against the sources listed. Report an error: support@investify.pk. Editorial policy
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