ISLAMABAD: Air Headquarters (AHQ) has asked the Petroleum Division’s director general (DG) Oil to intervene and urgently resolve the issue of rising furnace oil stocks at refineries to ensure uninterrupted fuel supply to the Pakistan Air Force (PAF).
In a letter dated December 23 to the DG (Oil), the AHQ has stated that fuel supply from refineries is a lifeline for the air warfare branch of the armed forces for sustaining operations.
PAF operational preparedness is dependent on smooth replenishment of aviation fuel (JP-8) from inland refineries and maintenance of strategic fuel reserves. However, non-availability of fuel from refineries will gradually decrease strategic fuel reserves and PAF war stamina. Priority handling of the matter and intervention of your good office will be highly appreciated, please, the letter states.
It adds that refineries like Pakistan Refinery Limited (PRL) and BYCO have highlighted that fuel supply to PAF may be hampered in the near future due to critically high quantities of High Sulphur Furnace Oil (HSFO) at storage facilities that the power sector is not lifting. In this scenario, refineries are headed towards forced shut downs.
Earlier, the Oil Companies Advisory Council (OCAC), in a letter to the DG (Oil) on December 3 stated that local oil refineries are the backbone of the country’s energy security, supplying over 11 Million Metric Tonnes (MMT) of various petroleum products but due to non-uplifting of fuel oil and limited storage, they are forced to reduce and in some cases, almost shut down crude processing which will affect the availability of the petroleum products, eventually disturbing an already fragile supply chain.
The OCAC pointed out that the government, during this year, has so far made substantial payments to IPPs that are bound to keep mandatory stocks as required according to Fuel Supply Agreements (FSAs) with OMCs.
It is pertinent to mention that local refineries have been repeatedly asking the Petroleum Division to take measures for lifting the furnace oil to “safeguard the country’s strategic assets.”
The OCAC pointed out that the government, during this year, has so far made substantial payments to IPPs that are bound to keep mandatory stocks as required according to Fuel Supply Agreements (FSAs) with OMCs.
The Directorate General (Oil) of Petroleum Division, in a letter dated December 9, 2021, has requested the power division to direct the power plants to uplift furnace oil (FO) through PSO/ OMCs immediately for stock buildup and provide payments/ LCs to PSO.
