The Oil and Gas Regulatory Authority (Ogra) has granted approval to Cnergyico Pakistan Limited (CPL) to export 30,000 metric tonnes (MT) of furnace oil due to a surplus resulting from reduced local consumption.
According to a letter issued by Ogra, CPL is permitted to export the specified quantity between November 20 and December 10, 2024, exclusively through the Kemari Port.
CPL had sought this approval late last month, citing a sharp decline in domestic demand for furnace oil.
Furnace oil exports have been ongoing throughout November, with Pak Arab Refinery Limited (Parco) leading the shipments earlier this month.
During the first four months of the current fiscal year, Pakistan exported a record 430,000MT of furnace oil, reflecting a significant drop in domestic consumption.
Monthly exports included 116,000MT in July, 66,500MT in August, 114,000MT in September, and 133,700MT in October.
The reduced demand is linked to the government’s shift away from furnace oil for power generation due to its high costs. This transition resulted in an 87% decrease in power generation from furnace oil during the first four months of the current fiscal year compared to the same period last year.
In October, its contribution to electricity generation was nearly negligible.
