Pakistan, June 24 -- ISLAMABAD - The Oil Companies Advisory Council (OCAC) has warned that proposed carbon and petroleum levies on furnace oil could force local refineries to shut down due to soaring operational costs. OCAC Chairman Adil Khattak cautioned that these levies might increase furnace oil prices by more than 80%, making operations financially unsustainable for many refineries.

The government plans to introduce a combined Rs79.5 per litre levy-Rs77 for petroleum and Rs2.5 for carbon-starting July 1, 2025, under the IMF's Resilience and Sustainability Facility. This move could raise furnace oil prices by Rs85,000 per ton, pushing the total cost to nearly Rs235,000 per ton, with projections reaching Rs250,000 if global oil prices...