- To meet the increasing electricity demand of the country, the government has formally lifted the ban on furnace oil imports. About seven oil companies have also been instructed to make arrangements required for the imports.
- Private power producers have also been allowed to import furnace oil through and oil marketing companies, after getting a no-objection certificate from the power division.
- It has also been advised to direct the power division to power plants so as to maintain their stocks of furnace oil as per their purchase agreements. This would avoid issues with the refineries and other problems to follow.
To meet the increasing electricity demand of the country, the government has formally lifted the ban on furnace oil imports. About seven oil companies have also been instructed to make arrangements required for the imports. This ban was imposed by the Cabinet Committee of Energy (CCoE) in January 2019, so as to facilitate local refineries to use up their stocks. This decision was reversed by the same committee after a meeting headed by Planning and Development Minister Asad Umar, was held earlier this week.
Under this decision, PSO has been allowed the import of two firm cargo and one optional cargo of furnace oil. Private power producers have also been allowed to import furnace oil through and oil marketing companies, after getting a no-objection certificate from the power division. This is to ensure that all of the local fuel oil is consumed first keeping in mind the demand and supply situations.
The petroleum division has however notified that the power division should be issuing the no-objection certificate only to the independent power producers so that uninterrupted supplies to the general trade sector could be ensured. It has also been advised to direct the power division to power plants so as to maintain their stocks of furnace oil as per their purchase agreements. This would avoid issues with the refineries and other problems to follow.
