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Byco refinery spends Rs 15 billion more than to collected deemed duty on up-gradation of its plants

Byco refinery spends Rs 15 billion more than to collected deemed duty on up-gradation of its plants
November 12, 2021 Web Desk

Sohail Iqbal Bhatti

ISLAMABAD – Byco Petroleum Pakistan Limited has spent Rs 15 billion extra amount than to the collected deemed duty of Rs 38 billion while five refineries utilized Rs 199 billion  on up-gradation of their plants from 2002 to 2020.

According to documents, country’s total five refineries have collected Rs 237 billion on account of deemed duty from the year 2002 till 2020 and they utilized Rs 199 billion on up-gradation of their plants while Byco refinery remained at top in spending more than to its collection of the deemed duty.

Sharing details of deemed duty, sources also said that Pak Arab Refinery (PARCO) had collected Rs 76billion and spent Rs 66 billion while Attock Refinery Ltd collected Rs 47billion and spent Rs 26 billion. Similarly, National Refinery Ltd. collected Rs 40 billion and spent Rs 37 billion, while Pakistan Refinery Ltd collected Rs 36 billion and spent Rs 17 billion.

Furthermore, Byco Petroleum Pakistan Ltd collected Rs 38 and spent Rs 53 billion during the said audit period (2002 to 2020).

The sources said that upcoming Cabinet Committee on Energy (CCoE) is likely to take up details of audit regarding collection and utilization of billion rupees worth deemed duty from 2002 to 2020 by the five refineries of the country. They said that next CCoE is likely to be held during the next week and it is likely to take up a summary of the petroleum division regarding tariff protection (deemed duty) for refineries. They said in compliance of a decision of the Cabinet Committee on Transport and Logistics (CCoTL), Petroleum Division through a summary will present details of audit regarding collection and utilization of billion rupees worth deemed duty from 2002 to 2020 by the refineries. Local refineries have made improvements in the product specifications of motor gasoline (petrol) and high speed diesel (HSD), said the sources.

They added that refineries have up-graded their plants by using deemed duty as well as their own resources and got its financial/technical audit.

As per details, in order to ensure supply of quality products to the consumers, the government has been constantly improving the desired specifications of refinery products to remain aligned with global refinery market as well as international quality benchmarks. And, improvement in product standards has led to the up-gradation of existing plants to remain commercially viable against the headwinds of import of oil products from international market.

As per brief chronology of improvement of product specifications by refineries of the country, enhancement of motor gasoline research octane number (RON) from 80 to 87 RON in 2000, elimination of lead from motor gasoline in 2002, enhancement of motor gasoline RON from 87 to 92 (Euro-II) in 2016 and Euro-V motor gasoline is next target for 2026.

Similarly, prior to 2012, sales of diesel @ 1 percent Sulphur content, shift to diesel @ 0.5pc Sulphur content in 2012, shift to diesel @ Euro-II @ 0.05% Sulphur content and next target is Euro-V HSD @ 0.001 Sulphur content.