KARACHI: The Oil and Gas Regulatory Authority (Ogra) has granted permission to Cnergyico Pakistan Limited (CPL) to export up to 40,000 metric tonnes of furnace oil (FO) during April 2026, following similar approvals for two other refineries earlier this month.
Ogra previously allowed Pak Arab Refinery Limited (Parco) and National Refinery Limited (NRL) to export 50,000 and 70,000 metric tonnes of FO, respectively. Attock Refinery has also sought approval for furnace oil exports.
The regulator said the decision was taken in light of a meeting of the National Committee on Monitoring of Commodities (NCMC). The permitted export quantity carries a margin of plus or minus 10 per cent and is subject to meeting local upliftment requirements of high sulphur furnace oil (HSFO).
Ogra also advised the company to maximise its loading flow rate to ensure the timely sailing of cargo within the assigned discharge window.Pakistan has periodically allowed furnace oil exports amid fluctuating domestic demand and surplus stocks, particularly as power generation increasingly shifts towards alternative fuels.
However, tensions in the Middle East have constrained exports, as liquefied natural gas (LNG) supplies were disrupted due to the closure of the Strait of Hormuz and damage to oil and gas installations in Qatar, a key supplier to Pakistan under long-term agreements.
Reduced gas availability for power generation has led authorities to tighten controls on furnace oil exports to ensure sufficient fuel for electricity production. Although furnace oil is a relatively expensive option for power generation, it continues to be maintained as an emergency backup to avert potential power shortages.
Industry sources said the NCMC has decided to retain 100,000 metric tonnes of furnace oil within the country for power generation, while allowing exports of surplus volumes. “The government has allowed refineries to export furnace oil after ensuring that the required quantity, as per the NCMC decision, is maintained domestically,” an industry representative said.
