The Oil and Gas Regulatory Authority (Ogra) has allowed Cnergyico Pakistan Limited (CPL) to export 40,000 metric tonnes (MT) of high-sulfur furnace oil (HSFO) in August, following the refinery’s request.Â
The decision comes as domestic demand for furnace oil continues to decrease due to rising costs in the power generation sector, prompting the company to seek export options.
As per reports, the refining sector is increasingly relying on exports to maintain operations. In the fiscal year ending June 30, 2025, Pakistan exported more than 1.4 million tonnes of furnace oil, including 1.3 million tonnes of HSFO and 137,880 tonnes of low-sulphur furnace oil (LSFO). However, exports in June fell to 73,101 tonnes of HSFO, a decrease from 121,066 tonnes in May.
The imposition of a combined petroleum and climate support levy of Rs82,077 per tonne has made furnace oil unaffordable for many industrial sectors, including cement, textiles, shipping, and others, leading to a continued rise in exports. Industry expects exports to remain elevated throughout the current fiscal year.
Furnace oil, a deregulated product, has seen its share in Pakistan’s power generation mix fall to below 1% in the last fiscal year. Domestic refineries are also planning to reduce HSFO production by 78%, from 15,500 tonnes per day to 3,400 tonnes, under the new refining policy.Â
However, these plans have faced delays due to disputes over sales tax exemptions for petroleum products in the previous fiscal year.
