Furnace oil prices decline in Pakistan

KARACHI: The price of furnace oil has declined, leading to speculation that electricity production prices would also go down.

The price for a tonne of imported furnace oil has gone down by Rs1,365, bringing it to Rs80,811.

On the other hand, the price of local furnace oil has fallen by Rs1,938, bring the per tonne rate to Rs77,296.

Last year, government banned the import of furnace oil in order to encourage LNG-based generation in the country.

The ban was lifted a few months later, when the Economic Coordination Committee of the Cabinet allowed the state-owned Pakistan State Oil (PSO) to import furnace oil for the power sector.

The directives were given by the then premier, Shahid Khaqan Abbasi, of the Pakistan Muslim League-Nawaz that had promised to pull the country out of the power crises it has been in since years now.

The state-owned petroleum company was directed to help create the furnace oil stock for power plants, according to reports.