Pakistan Refineries to Export 130,000 Tonnes of Furnace Oil in October

Refineries-Face

KARACHI: Three Pakistani refineries will export a combined 130,000 tonnes of furnace oil in October, following approval from the Oil and Gas Regulatory Authority (Ogra).

According to Ogra’s approval letter, Cnergyico Pakistan Limited (CPL) will ship 55,000 tonnes, Pak-Arab Refinery Limited (Parco) 50,000 tonnes, and Pakistan Refinery Limited (PRL) 25,000 tonnes.

The move underscores a steep decline in domestic demand, with industry officials reporting that nearly 95% of furnace oil output is now exported. Average daily production stands at around 6,400 tonnes, translating to nearly 200,000 tonnes per month.

Officials attributed the slump in local sales to new petroleum and carbon levies introduced in the FY25 budget, which made furnace oil costlier and dampened demand. Instead of boosting government revenues, the taxes have reduced consumption and weakened collection.

Once a key source of electricity generation, furnace oil has rapidly lost ground due to high costs and policy discouragement. In August, just 92 megawatts were generated from furnace oil, compared to total national output of 14,218 MW.

Pakistan exported over 1.4 million tonnes of furnace oil in FY25. In the first two months of FY26 alone, exports hit 280,000 tonnes — including nearly 111,000 tonnes in August.

Industry insiders warn that while exports may offer temporary relief, the long-term sustainability of furnace oil production remains in question.

Story by Tanveer Malik

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