Local refineries approach govt as furnace oil crisis looms

• SAPM on Petroleum Nadeem Babar has decided to make a Working Group comprising government officials and representative from the refineries.

Amid reports of furnace oil crisis, local Pakistani refineries including National Refinery Limited and Attock Refinery Limited have decided to take up the matter to the Ministry of Energy.

“Reference to several articles published in several newspapers on the issue of Furnace Fuel Oil (FFO) crisis being faced by local refineries, the company’s management along with other local refineries has taken up this matter with the Ministry of Energy (Petroleum Division),” said Attock Refinery Limited, in their announcement to PSX. A similar statement was shared by the National Refinery Limited.

The company informed that the Special Assistant to Prime Minister on Petroleum Nadeem Babar has decided to make a Working Group comprising government officials and representative from the refineries.

The Working Group would work with “the objective to address this issue and recommend remedial policy measures to ensure sustainability of economically viable refining operations and making it feasible to undertake future up-gradation projects”.

In early December, Furnace Oil (FO) prices nosedived in the international markets due to IMO-2020, reported Business Recorder Research. The world view is that FO prices are less likely to recover. If that happens to be the case, it could spell trouble for Pakistan refineries, unless they are bailed out by government.