ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has approved export of up to 40,000 metric tonnes of furnace oil for April 2026 by Cnergyico Pakistan Limited, extending similar permissions granted earlier to other refineries.
Previously, the regulator allowed Pak Arab Refinery Limited and National Refinery Limited to export 50,000 and 70,000 metric tonnes respectively, while Attock Refinery Limited has also applied for approval.
The decision follows recommendations of the National Committee on Monitoring of Commodities, with export volumes subject to a ±10% margin and conditional on meeting domestic demand for high sulphur furnace oil.
Ogra directed the company to optimise loading operations to ensure shipments are dispatched within the assigned delivery window.
Pakistan periodically permits furnace oil exports when local demand weakens and inventories rise, particularly as power generation shifts towards alternative fuels.
However, ongoing tensions in the Middle East have disrupted liquefied natural gas supplies, including constraints linked to the Strait of Hormuz and damage to energy infrastructure in Qatar, affecting fuel availability for power generation.
With reduced gas supply, authorities have tightened oversight of furnace oil exports to ensure adequate reserves for electricity production, where furnace oil remains an emergency backup despite higher costs.
Industry sources said the committee has decided to retain 100,000 metric tonnes of furnace oil for domestic use while allowing export of surplus quantities, ensuring local energy needs are met before shipments abroad.
