Govt seeks data on furnace oil production, exports

By Tanveer Malik
February 26, 2025
Crude oil barrels staked at a refinery can be seen. — APP/File
Crude oil barrels staked at a refinery can be seen. — APP/File

KARACHI: The government has requested data on the total production of furnace oil from the country’s oil sector, along with details on local demand.

The oil sector has also been asked to provide information on the quantity of furnace oil exported, its export prices, profits earned from exports and the names of buyers and countries in the global market.

The Ministry of Energy sought these details in response to a query from the Senate, which requested the information to address a question from a senator.Pakistan is producing an excess quantity of furnace oil and exporting it after local consumption reached its lowest point due to nearly zero use in power generation.

According to industry figures, the country exported a record 189,000 tonnes of furnace oil in January 2025. Monthly furnace oil exports surged by 113 per cent compared to January 2024 and by 47 per cent from December 2024, marking an all-time high. Cumulative exports for the first seven months of the current fiscal year grew by 63 per cent year-on-year, reaching 895,000 tonnes.

The rise in exports follows the government’s decision to allow refineries to sell surplus furnace oil in international markets, as domestic power plants increasingly opt for alternative energy sources.

Power generation data from the first seven months of the fiscal year (July-January 2024) revealed that furnace oil now plays an insignificant role in the country’s energy mix, with generation from furnace oil accounting for zero percent of total output, down from 3.0 per cent during the same period last year.

Pakistan’s refining sector is actively working to reduce furnace oil output. Under the new refining policy, refineries are expected to cut high-sulphur furnace oil production by 78 per cent, reducing daily output from 15,500 metric tonnes to 3,400 metric tonnes following planned upgrades.However, these upgrades have been delayed due to disagreements over sales tax exemptions on petroleum products in the current fiscal year.