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No more oil shortages as Pak Refinery unveils $1.2bn expansion plans

According to PRL Managing Director, the project will double the company’s installed refining capacity to 100,000 barrels per day in five years. Daily petrol production will increase from 750 tonnes to 4,000 tonnes. Meanwhile, diesel production will rise from 2,000 tonnes to 5,000 tonnes.

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Pakistan Refinery Ltd (PRL) decides to expand its production capacity at an estimated cost of $1.2 billion. The refinery expansion project aims to produce advanced quality petrol and diesel with the requirement to produce Euro-V high-speed diesel (HSD) and motor spirit (MS/ petrol).

According to PRL Managing Director Zahid Mir, the project will double the company’s installed refining capacity to 100,000 barrels per day in five years.

“Daily petrol production will increase from 750 tonnes to 4,000 tonnes. Meanwhile, diesel production will rise from 2,000 tonnes to 5,000 tonnes,” he informed.

Important to note, currently PRL has an installed capacity to process 47,000 barrels of crude oil per day.

Read more: International oil prices secure biggest weekly gain since late Aug

This is certainly a welcoming development as an increase in production will prevent energy shortages. It will also bring down petrol prices in Pakistan. Important to note, the government earlier announced to slash the prices of petrol and high-speed diesel by Rs5 per litre. The decision came in order to provide relief to the people.

Govt slashes petrol prices

According to a handout issued by the Finance Division, the government decided to revise existing prices “in view of the declining price trend of petroleum products in global market[s] and [to] transform the impact to the masses”.

The new price of petrol is Rs140.82 per litre while high-speed diesel will sell for Rs137.62 down from Rs145.82 and Rs142.62, respectively.

Meanwhile, the prices of kerosene and light diesel oil (LDO) were decreased by Rs7 and Rs7.01 per litre, respectively. The new price of kerosene is Rs109.53 per litre and that of LDO is Rs107.06 per litre.

Read more: Oil prices down after joint efforts

Prior to the new cheaper prices, the government faced intense criticism from the Opposition and the public after PM Khan increased petrol prices during the month of October. Major opposition parties held country-wide rallies and protests over what they term “unprecedented inflation in the country”.