20000102

Govt formulating

fresh policy for

oil refineries

RECORDER REPORT

KARACHI: The federal government is drawing a fresh policy framework for the oil refineries which may end restrictions on their returns, it is learnt.

The cap of 40 percent on the returns is expected to be removed by the government under the new mechanism, sources told Business Recorder.

Moreover discrepancies between the current pricing mechanism and that of Petroleum Policy of 1997 would also be eliminated, sources said.

They said the Economic Advisory Board (EAB) had sought proposals from all three operational refineries in the country to help in devising a new package for the refinery sector which should conform to open market needs.