Industry officials have revealed that Pakistan is poised to resume its fuel oil exports after a hiatus of one-and-a-half months, with a local refinery gearing up to ship 50,000 tonnes of the product in the near future. The pause in fuel oil exports, which halted in January, was prompted by a surge in domestic demand for electricity generation amidst reduced hydropower output due to canal closures.
Pakistan last exported fuel oil in December 2023, reaching a total export volume of 434,000 tonnes in the first half of the current fiscal year, which began in July. With local demand for fuel oil experiencing a sharp decline as hydropower generation has increased this month, Pak Arab Refinery Limited (PARCO) is set to initiate exports.
PARCO, holding a substantial stockpile of 69,000 tonnes of fuel oil, is leading the export drive, as other refineries are facing limitations due to maintenance shutdowns. Pakistan Refinery Limited (PRL) and Cnergyico are presently closed for annual maintenance, while Attock Refinery Limited (ARL) plans to shut down its unit on February 18, 2024.
Presently, PARCO commands 69 percent of the fuel oil stock, followed by ARL with 26 percent. Cnergyico holds five percent, while PRL and National Refinery Limited (NRL) have four and one percent respectively, contributing to the country’s total stock of 109,000 tonnes.
February’s consumption data reflects a significant downturn in fuel oil sales, with a 59 percent decrease compared to January. January witnessed total consumption of 183,000 tonnes, with the first half of the month accounting for 89,000 tonnes, which plummeted to just 29,000 tonnes in the first half of February.
