Pakistan plans to export more than 160,000 MT fuel oil in March, the source of industry said, because the state oil refinery aims to reduce inventory in the midst of weak domestic demand.
The South Asian country exported the highest monthly record of 189,457 MT fuel oil in January, followed by shipping around 38,777 MT in February, according to data from the Advisory Board of Oil – Authority that compiled data on the consumption of petroleum products, imports and exports.
Cndiegyico PK Limited plans to export nearly 65,000 MT of fuel oil in March, Pak Arab Refinery Ltd (Parco) is around 50,000 MT, Pakistani refinery is nearly 25,000 MT, while Attock Refinery plans to export nearly 30,000 MT of low sulfur fuel during the month, the industrial source said at the weekend of March 21.
The refineries currently have stocks from 186,860 MT fuel oil, with CNERGYICO holding 68,180 MT, PARCO 67,067 MT, Pakistan Refinery 38,144 MT, National Refinery 11,369 MT and Attock Refinery 2,100 MT. Attock Refinery also holds stock 38,144 MT LSFO, said the industrial source.
In recent years, the Pakistani government has prevented the use of fuel oil in running domestic utilities, encouraging refineries to increase exports. Traditionally a clean importer of fuel oil, Pakistan is now exporting residual fuel levels, adding regional supply.
The power plant from the fuel power plant fired falls to 261 GWH in the first eight months of the current fiscal year, between July 2024 and February 2025, compared to 2,103 GWH produced in the same period last year, data from the national power regulator authority managed by the state.
The government aims to increasingly turn to lower alternatives to produce electricity. According to official government data, in March, the cost of producing electricity from oil -fired fuel power plants is Pakistan Rupee 35/unit, Rupee 22.35/unit from Regasify LNG and around Rupee 18.90/unit from imported coal.
Fuel oil consumption in February decreased 9% from year to year to 53,000 MT, compared to 58,000 MT in the same month last year, OCAC data showed.
In the eight months of fiscal years at this time until February 28, consumption fell 43% to 458,000 MT compared to 795,000 MT in last year’s period, according to data.
Pakistani fuel exports in eight months ending February 28 jumped 70% to 933,595 MT, against 549,973 MT in the previous year, OCAC data showed.
The Asian high sulfur fuel oil market, which has gathered in recent weeks thanks to strong demand and strict availability, has begun to witness the potential for losses because the basic power of the new basis has attracted the supply of arbitration to Singapore, adding regional stock.
The HSFO bunker demand looks moderate in the best, and the demand for raw materials for residual values remains slow, said trading sources.
Platts, part of the S&P Global Commodity Insights, assessed the difference between Singapore 380 CST HSFO Cargo Cash on the average Singapore Platts 380 CST HSFO Premium Premium Assessment from $ 16.51/MT March 20, down for the fourth successive session, from $ 16.76/MT March 19. It was judged by a premium of $ 15.69/MT.
Platts consider Singapore 180 CST HSFO Cash Premium on MOPS 180 CST HSFO Assessment with a premium of $ 11.76/MT March 20, down from $ 14.50/MT in a previous session, weighed with a competitive offer from transformer during physical trading windows. HSFO 180 CST cash difference is at the lowest point since February 26, when it is assessed at $ 10.87/MT.
The HSFO 180 CST class, which is widely used in the power generation sector in South Asian countries such as Bangladesh and Sri Lanka, is expected to gather strength gradually before the summer of the peak months from April and so on.
Source: Platts
