Parco, PRL and NRL allowed to export 160,000 tonnes of furnace oil

The Oil and Gas Regulatory Authority (Ogra) has allowed Pakistan Refinery Limited (PRL), Pak-Arab Refinery Limited (Parco) and National Refinery Limited (NRL) to export a combined 160,000 metric tonnes of furnace oil during the current month.

PRL has been permitted to export 50,000 metric tonnes of furnace oil, while Parco can ship 60,000 metric tonnes. NRL has been authorised to export 50,000 metric tonnes of high-sulphur furnace oil.

The approvals were issued after the National Committee on Management of Crises (NCMC) granted in-principle clearance for the exports, subject to safeguards for domestic fuel availability.

Ogra said the refineries must maintain strategic furnace oil reserves sufficient to meet power-sector requirements and ensure domestic supplies remain aligned with the approved supply plan.

The regulator also directed the companies to maximise loading flow rates so that vessels can depart within their assigned shipment windows.

The permissions are intended to help refineries manage surplus inventories as domestic furnace oil consumption declines due to the power sector’s shift towards relatively cheaper fuels.

The exports are also expected to free storage capacity for higher-value petroleum products while preserving stocks needed for electricity generation during periods of increased demand.

Ogra said the permissions would remain valid only if the refineries complied with all conditions, particularly those relating to strategic reserves and uninterrupted domestic supply.