Islamabad (TDI): Attock Refinery Ltd. expects to finalize the new refinery policy soon, pending government adjustments to recent tax changes that impact petroleum product exemptions.
The company aims to increase furnace oil exports to 120,000 tons next fiscal year, leveraging higher prices for low-sulfur fuel oil.
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Additionally, a new 5,000 barrels per day allocation from Sindh’s Badin Basin will help stabilize crude supply.
A day earlier media reported that Issues relating to new refinery policy likely to be resolved soon due to ongoing talks with government, states Attock Refinery Management in briefing to analyst.
“Regarding the New Refinery policy the management shared that the company is ready to sign the refinery policy. However, the Finance Act 2024 has made changes to Sales Tax Act 1990 (tax exemption on the petroleum products).
This could hampers the incentives and increase costs for the company (given no input taxes adjustment against output taxes). Therefore signing has been delayed until the the matter is resolved” states AHL research in its briefing notes.
“The sector had talks with government regarding the said issues and the government have committed to resolve this issue.
The management believes that the issue is expected to be resolved within a week (10th Nov’24 – 15th Nov’24)” states briefing note.
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The refinery has exported 80k to furnace oil during the previous year. Changes in this connection are also expected.
