No more oil shortage as Pak refinery unveils $ 1.2 billion expansion plans
Pakistan Refinery Ltd (PRL) decides to increase its production capacity at an estimated cost of $ 1.2 billion. The refinery expansion project aims to produce premium gasoline and diesel with the obligation to produce Euro-V high speed diesel (HSD) and motor gasoline (MS / gasoline) .
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 gasoline production will drop from 750 tonnes to 4,000 tonnes. Meanwhile, diesel production will drop from 2,000 tonnes to 5,000 tonnes, â€he said.
It is important to note that currently PRL has an installed capacity to process 47,000 barrels of crude oil per day.
Pakistan Refinery decided to expand and modernize at a cost of $ 1.2 billion
It will double its installed capacity to 100,000 barrels per day in 5 years.
Daily gasoline production will drop from 750 tonnes to 4,000 tonnes while diesel production will drop from 2,000 to 5,000 tonnes.
– Pakistan economy (@Pakistanomy) December 29, 2021
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This is certainly an encouraging development, as increased production will prevent energy shortages. It will also lower oil prices in Pakistan. It is important to note that the government announced earlier to reduce the prices of gasoline and high speed diesel by Rs 5 per liter. The decision came to bring relief to the people.
Government lowers oil prices
According to a document released by the Finance Division, the government has decided to revise existing prices “due to the downward trend in the prices of petroleum products on the world market.[s] and [to] transform the impact on the masses â€.
The new gasoline price is Rs 140.82 per liter, while high speed diesel will sell for Rs 137.62, compared to Rs 145.82 and Rs 142.62 respectively.
Meanwhile, the prices of kerosene and light diesel fuel (LDO) fell by Rs 7 and Rs 7.01 per liter, respectively. The new price for kerosene is Rs 109.53 per liter and that of LDO is Rs 107.06 per liter.
Read more: Oil prices fall after joint efforts
Ahead of the new cheaper prices, the government faced stiff criticism from the opposition and the public after Prime Minister Khan raised oil prices during October. The main opposition parties have staged rallies and protests across the country against what they call “unprecedented inflation in the country”.