Oil industry rejects budgetary measures

Claiming that the proposed federal budget 2024-25 practically cancelled the recently announced policy for setting up new and upgrading existing refineries, the oil industry has asked the government to revive the existing taxation regime, including continuing customs duty on diesel and sales tax laws on all petroleum products. In a representation to the federal ministers for finance and petroleum, the Oil Companies Advisory Council (OCAC)—an independent organisation formed by refineries, oil marketing companies, and a pipeline company—has conveyed the industry’s concerns over the next year’s budgetary measures. The OCAC said the withdrawal of the existing 10 per cent customs duty on the import of high-speed diesel (HSD) contradicted the “Pakistan Oil Refining Policy for New/Greenfield Refineries 2023” and the “Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield 2023,” aimed at attracting foreign investment for new refineries and upgrading existing ones.