The refining sector in Pakistan has suspended the export of fuel oil due to a significant increase in domestic demand.
This surge is attributed to reduced hydropower generation and colder weather conditions, as stated by industry officials on Thursday.
January saw the country’s fuel oil consumption escalate to 8,000-10,000 tonnes per day, a sharp rise from the previous consumption of less than 4,000 tonnes per day. Previously, refineries were exporting their surplus fuel oil.
Officials explained that the increased demand for fuel oil began when canal desilting operations in the country halted water releases from dams, subsequently reducing hydropower generation.
This reduction in hydropower output necessitated the higher utilization of furnace oil-based power plants to fulfill the country’s electricity needs.
Additionally, the extreme weather, including heavy fog in populous regions like Punjab, led to increased gas consumption for heating, thereby reducing the power generation from gas-fired plants.
Earlier, power plants were not purchasing fuel oil from local refineries during the first half of the current fiscal year due to lower demand.
However, this situation has recently reversed, with refineries declining offers to export fuel oil.
One refinery canceled an export plan for 50,000 tonnes of fuel oil, and another is now selling all its fuel oil domestically.
Furthermore, Pakistan State Oil (PSO) is reportedly approaching a refinery that had 50,000 tonnes of fuel oil at Port Qasim, which was imported a few weeks ago, to purchase for power plants.
Oil export data indicated that over 160,000 tonnes of fuel oil were exported in December, the highest monthly figure recorded, bringing the total export to 460,000 tonnes in the first half of the current fiscal year.
However, despite the trend of increasing fuel oil consumption in recent months, exports are expected to decline in January, as per officials’ statements.
I was ecstatic when I read this webpage. This webpage seems to be pretty useful to me. It was wonderful.
Charity begins at home. Please fulfill your own needs first and the export the surplus. Do not make the common man suffer like you are doing now by exporting onions. Dollars should not blind you.
total scam by refineries…they better crack furnace oil instead of exporting it. pet coke can be used in coal power plants instead
Refineries lobbies are strong in Islamabad. They carry brief cases full of $ to use more furnace oil for power generation. They can buy ruling elites