ISLAMABAD: A parliamentary panel on Thursday called for the closure of oil refineries producing Euro-2 and below standard oil due to detrimental impact on public health.
The National Assembly’s Standing Committee on Petroleum met under Chairman Syed Mustafa Mehmood, here on Thursday.
These refineries, the committee members argued, contributed to respiratory ailments like asthma and cancer, putting the population at risk.
‘Refineries upgrade at risk due to newly-introduced sales tax exemption’
A ban on NMA (monomethylaniline) content in petroleum product is not part of the testing services in the country alongwith high range of magnesium. Both NMA and Magnesium are highly efficient octane booster, capable of increasing the octane rating of fuel.
The committee chairman directed the Petroleum Ministry to provide a detailed cost analysis per litre for refineries producing oil containing NMA and Magnesium, both of which are considered public health hazards.
The Petroleum Division and the Oil and Gas Regulatory Authority (OGRA) have different approaches. Both said five refineries had strategic importance and their subsidy and incentives should be continued for their up-gradation.
Chairman OGRA Masroor Khan said that refineries had been facing challenges, especially after the current fiscal year’s federal budget, which had a negative impact on their operations and fresh investment. Chairman OGRA and Secretary Petroleum Division Momin Agha apprised the committee that the implementation of the Refining Policy is held due to a recent change in the sale tax act, whereas, petroleum products have been exempted from sale tax. The matter is being reviewed in consultation with Finance Division and Federal Board of Revenue (FBR).
Responding to Member Committee Asad Alam Niaz’s question on any progress on the deregulation of petroleum products, the chairman OGRA said the authority and Petroleum Division are engaged with various stakeholders and could not give any timeline as it requires a lengthy process.
The managing director (MD) Pakistan State Oil (PSO), however, said the company would go in favour of the deregulation of petroleum products when it was given an equal playing field and empowered to take decisions on procurement of petroleum products in the international market.
The committee also took serious notice of the absence of Minister for Petroleum Musadiq Malik, Managing Directors (MDs) OGDCL, PPL and Mari Petroleum.
The secretary explained that the minister had to rush to Russia for important meetings pertaining to the energy sector and two MDs OGDCL and PPL were in London for discussion with consultants on RekoDiq shares.
Copyright Business Recorder, 2024
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