The Oil and Gas Regulatory Authority (Ogra) has approved the export of an additional 80,000 metric tonnes (MT) of furnace oil, granting permissions to Pak-Arab Refinery Limited (Parco) and National Refinery Limited (NRL).Â
This follows an earlier approval allowing Cnergyico Pakistan Limited (CPL) to export 40,000MT of the fuel.
Parco has been authorised to export 50,000MT during the fourth week of December, while National Refinery received approval to export 30,000MT.Â
National Refinery will split its allocation equally between shipments from Port Qasim and Kemari Port.
The accumulation of furnace oil stock is attributed to declining demand in Pakistan’s domestic market, where power plants have deprioritised its use due to high costs. In response, refineries are increasingly turning to exports to manage their surplus.
Earlier, Cnergyico was granted permission to export 40,000MT as the industry struggled to find buyers locally.Â
A total of 430,000MT of furnace oil was exported during the first four months of the current fiscal year, with monthly figures of 116,000MT in July, 66,500MT in August, 114,000MT in September, and 133,700MT in October.
Electricity generation from furnace oil has decreased by 87% compared to the same period last year, with its usage in October being almost negligible. The government’s policy shift towards cost-effective and sustainable energy alternatives is reflected in this decline.
