By Monday, furnace oil
stocks crossed beyond 935,000 tones, which were enough for 65 days of average usage, while aviation stocks were around 11,000 tones equivalent to average consumption of around four days.
Official figures show that the consumption of furnace oil
has plummeted to its lowest level in the last 20 years around 9.2 million tonne during the year ended March 31, 2012.
This was mostly owing to furnace oil
production reduced by 11 percent to 185,000 tonne.
Attock Refinery Limited, National Refinery Limited and Attock Petroleum have already halted the supply of furnace oil
to government thermal powerhouses because of non-payment of 30 billion rupees.
Steep rise in furnace oil
use is expected from next year when power production by Wapda from Muzaffargarh units gets underway.
Earlier, the government had imposed a ban on furnace oil
import in order to utilise the locally produced furnace oil
as the local refineries had warned to shut down due to reluctance of power sector to lift their supplies.
The only solution in the medium to long term was to continue exports of 200,000 tonnes of furnace oil
per month and gradually shift all refineries to hydrocracker units to produce higher quality products instead of furnace oil
The counsel of the accused, however, opposed the charges saying that he had only a clerical job in Wapda and had never been involved in deal of furnace oil
. He was just being made scapegoat while the real culprits were not being arrested.
The Central Power Purchasing Agency (CPPA) has sought a lower tariff increase this time around in comparison with May following a reduction in furnace oil
consumption, increase in hydroelectric and LNG-based power generation.
For over two decades, furnace oil
plants have played an important role in the energy mix of Pakistan.
The decision was announced after a hearing held earlier in which it requested by the Central Power Purchase Agency to reduce the power tariff in accordance to the furnace oil
A statement issued by the petroleum division said that the government had notified the immediate ban on the import of furnace oil
, except for K-Electric, and directed the refineries to utilise billions of rupees worth of deemed duty, which they collect on the sale of petroleum products, for upgrading their plants.