KARACHI: The Oil and Gas Regulatory Authority (Ogra) has granted approval for the export of an additional 80,000 metric tonnes (MT) of furnace oil to address surplus stock amid declining domestic demand.
The new approval includes 50,000MT for Pak-Arab Refinery Limited (Parco) and 30,000MT for National Refinery Limited (NRL). Parco is authorized to export its allocation during the fourth week of December, while NRL will export 15,000MT each from Port Qasim and Kemari Port during the same period.
This follows an earlier decision allowing Cnergyico Pakistan Limited (CPL) to export 40,000MT of furnace oil. With electricity generation from furnace oil dropping by 87% year-on-year, refineries are increasingly reliant on exports to manage excess stock.
Furnace oil’s role in Pakistan’s power sector has diminished significantly, with the government prioritizing cost-effective and sustainable energy alternatives. In the first four months of the current fiscal year, furnace oil exports reached 430,000MT, including 133,700MT in October alone.
This trend underscores the ongoing transition in Pakistan’s energy landscape, as the country shifts away from furnace oil towards cleaner and more economical power generation solutions.
