In May 2023, Pakistan took a significant step to address its mounting fuel oil stock, which had accumulated due to sluggish demand in the country.
90,000 tons in one month
Pakistan successfully shipped a substantial 90,000 tons of fuel oil during that month. This recent export adds to the impressive figure of 250,000 tons of fuel oil shipped out in the previous three months, from March to May.
Currently, Pakistan finds itself grappling with a substantial fuel oil surplus, with over 510,000 tons in stock. This surplus is being held by various stakeholders, including oil marketing companies (OMCs), power plants, and local refineries.
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The big guns
Of the surplus stock, power plants hold the largest portion, accounting for approximately 40 percent or 200,000 tons. OMCs follow closely behind, holding 180,000 tons, while the remaining stock is with the local refiners.
The decision to export such a significant quantity of fuel oil highlights Pakistan’s commitment to managing its inventory and maintaining a balanced supply-demand dynamic. It is an encouraging step towards optimizing resources and ensuring efficient utilization of fuel oil within the country.
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