Islamabad: Pakistan’s five major oil refineries have agreed to execute modernisation agreements early next month under the Brownfield Refinery Upgradation Policy, unlocking over USD six billion in investment and enabling the domestic production of Euro 5 compliant fuel.
The agreement follows high level meetings chaired by Federal Minister for Petroleum Ali Pervaiz Malik with executive leadership from Pak Arab Refinery Limited (PARCO), Pakistan Refinery Limited (PRL), National Refinery Limited (NRL), Cnergyico, and Attock Refinery Limited (ARL). The sessions reviewed progress on the policy framework, assessed financial and operational performance, and outlined steps to strengthen national energy security.
The planned upgrades aim to transition domestic refining capacity to Euro 5 fuel standards, curbing reliance on imported petrol and diesel. Local production of higher-grade fuels is expected to lower domestic prices compared with imported refined alternatives, according to the Petroleum Ministry.
During the discussions, the managing directors of Cnergyico, NRL, and ARL confirmed that all required preparations had been completed, positioning the signing of the agreements as the operational starting point for the policy. ARL’s managing director stressed the necessity of modernising existing facilities to keep pace with evolving global fuel standards and market dynamics.
In separate sessions with PARCO and PRL, the minister evaluated operational resilience during the recent Strait of Hormuz crisis. Malik commended both refineries for maintaining uninterrupted operations, noting that effective supply chain management prevented fuel shortages across the country.
The minister was also briefed on the proposed Oil City project in Hub, designed as a strategic energy terminal and storage complex to expand storage capacity, enhance trade connectivity, and support economic growth.
Malik reiterated that timely signing of the agreements remains critical for long-term sector sustainability, confirming that the government will assist refineries in resolving implementation hurdles to ensure the project moves forward.
