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Pakistan imposes ban on import of furnace oil

Staff Writer | January 9, 2019
Pakistani on Tuesday imposed a ban on the import of furnace oil, according to a press release from the Ministry of Petroleum and Natural Resources.
furnace oil
Asia   The ministry ordered the country's oil refineries to reduce oil production
The ministry also ordered the country's oil refineries to immediately reduce the furnace oil production to a minimum level and enter into commercial agreements with power producers for utilization of their capacity for its storage.

According to the press release, the government ordered all the local refineries to upgrade their oil refining facilities by utilizing the billions of rupees in annual deemed duty, which they collect on petroleum products.

Karachi Electric Limited, which has the mandate to illuminate the country's southern port city of Karachi and the surrounding region, is the exemption of the ban and is allowed to import furnace oil for the purpose of electricity generation.

The oil refineries in Pakistan were told to make sure that production of furnace oil is a minimal byproduct of crude oil processing in the future.

Moreover, the oil refineries were also instructed to enhance their storage facilities besides utilizing the proceeds of deemed duty for the upgradation and modernization of their refining facilities.

The ban on the import of furnace oil will take effect immediately, the press release added.


 

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