KARACHI: Pakistan’s furnace oil export has gradually gained pace, confirmed industrial stakeholders earlier this week, with record number of shipments carrying fuel oil leaving the country in recent months as refineries sought to sell their stocks to offset drastic domestic demand cuts.
The country, which has traditionally remained dependent on furnace oil imports has shipped about 150,000 tons during March and April, while shipments containing around 100,000 tons of it are processed for export deliveries within the ongoing month, according to people familiar with the situation.
Pakistani refineries that produce around 5,000 to 6,000 tons of furnace oil per day have currently 200,000 tons of it in excess.
The major domestic consumers of furnace oil are power plants, though the current economic crisis, soaring inflation, and massive currency devaluation against the US dollar have pushed the electricity demand toward the lower side, causing local demand for furnace oil to fall below 10 percent.
Currently, out of five oil refineries, the Pak-Arab Refinery (PARCO) and Pakistan Refinery (PRL) are two major exporters of the oil from Pakistan, while others convert it into bitumen or lube.
PARCO has shipped two cargoes of 50,000 tons each and they are preparing to ship another cargo of 50,000 tons within the next couple of days, an official of the petroleum sector said on Wednesday declining to be identified. PRL officials said they were also facing a similar situation.
“We have already exported 50,000 tons of furnace oil and are planning to export another 40,000 tons in May,” the CEO of PRL Zahid Mir told Arab News. “Out of the total furnace oil production, about five to ten percent is domestically consumed while 90 percent remains unsold which is being exported.”
The PRL chief said there was hardly any requirement from the country’s power producers after November 2022, leaving refineries to look for export markets.
“We are exporting or planning to export almost 90 percent of our production,” Mir said. “The exports of furnace oil are being made at discounted prices. At present, it is being exported at around $25 below the import price of crude oil.”
He said the exports of furnace oil were being made at losses to clear the excess stock which risked the operations of the refineries if the situation continued to persist for an extended period.
“When we are exporting oil, we are doing it at a substantial loss and if we continue to make losses for an extended period of time, the operations of the refinery will not be commercially viable,” he added.
However, the PRL chief said the exports have squeezed the profit margins of the refineries as compared to domestic sales.
“Overall, the [profit] margin of the refineries becomes negative after exports and if we sell it in the local market, we do it at import parity, which minimizes our losses to a large extent,” he said.
He warned if the refineries continued to incur losses, the risk of a shutdown would increase, leading to the import of gasoline and diesel.
“Recent price cuts of petrol and diesel have also put a dent in refineries’ profit margins and has distorted our economics, so we try to produce minimum, and by doing this, the throughput also reduces and the diesel and petrol production declines.”
Keeping in view the subdued demand since November 2022, Pakistani oil refiners feared that the demand for furnace oil will completely fade out in the next one or two years.
Pakistan makes record furnace oil export as domestic demand hits rock bottom
https://arab.news/cee5p
Pakistan makes record furnace oil export as domestic demand hits rock bottom
- Pakistan has shipped around 150,000 tons of the oil in the last two months, plans to export more
- Pakistani oil refineries say they are disposing of excess furnace oil stocks at a loss, risking shutdown
Pakistan’s Punjab deploys satellites, drones, AI to combat smog
- Senior minister warns industrial masks may become necessary without a change in public attitudes toward pollution
- Cities in Punjab face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution
ISLAMABAD: Punjab Senior Minister Marriyum Aurangzeb on Wednesday said Pakistan’s most populous province deployed satellites, drones and artificial intelligence to tackle smog, warning that industrial masks may become necessary if public attitudes toward air pollution did not change.
Punjab cities face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution that threatens public health and daily life. The smog season typically begins in late October, peaks between November and January and can persist through February.
Smog causes symptoms such as sore throats, eye irritation and respiratory illnesses, while prolonged exposure raises the risk of stroke, heart disease and lung cancer. Children are more vulnerable due to higher breathing rates and weaker immune systems.
“We have the AI machine-learning forecasting system in place, surveillance drones and technology cameras,” Aurangzeb said while addressing an event.
“At present, what is considered one of the world’s best environmental protection forces — with training, equipment, technology and digitally integrated data — is operating in Punjab,” she added.
Aurangzeb said surveillance is now being carried out through drones.
“There is monitoring, technology, cameras,” she continued. “Everything is digital.”
The minister maintained the eastern corridor from India was a major source of smoke which becomes active during the winter season.
She said this was the first time a complete testing system was introduced by the Environmental Protection Agency to measure pollution released by vehicles.
She added the government has loaned 5,000 super seeders to farmers, which are agricultural machines that plant crops directly into fields without removing leftover stubble, reducing crop burning, and helping curb winter smog.
Aurangzeb warned the situation could reach a point where people may have to use industrial masks and carry therm around like a “purse or wallet.”
“This will become a mandatory item if we do not change our attitudes and habits toward air quality, climate and conservation.”
Pakistan’s main urban centers routinely rank among the most polluted cities in the world, with vehicular emissions remaining one of the top contributors to air pollution.
The severe air pollution also undermines economic productivity and diminishes the quality of life for millions of residents.
