The Oil & Gas Regulatory Authority (Ogra) has given permission to Pak Arab Refinery Limited (Parco) to export 50,000 metric tonnes (MT) of furnace oil (FO) in July for the current fiscal year.
This approval comes as Parco holds a significant stockpile of 93,000 MT of fuel oil, which is half of the total reserves among all refineries, approximately 170,000 MT.
Parco requested Ogra for permission to export due to this large surplus. The export of fuel oil has seen a substantial increase, with over 800,000 MT exported in the last fiscal year. This rise in exports is mainly due to a decrease in domestic demand, particularly from the power generation sector.
Refineries have shifted their focus to producing diesel and petrol to meet local consumption needs, which has led to an excess of fuel oil. Consequently, they have sought to export this surplus to maintain a balance in their operations.
This strategic move by Ogra and Parco reflects the changing dynamics of the energy market in Pakistan, where the emphasis is now on optimizing refinery outputs to align with domestic and international demand.
The export of fuel oil not only helps in managing the surplus but also contributes to the economic stability of the refinery sector by generating additional revenue through international sales.
