Pakistan has exported 90,000 tons of fuel oil in May 2023 to reduce a large stockpile caused by low demand. In the past three months, fuel oil exports have reached 250,000 tons.
This trend is expected to continue as fuel oil consumption remains stagnant due to an economic slowdown and moderate weather conditions. Currently, Pakistan has over 510,000 tons of fuel oil stock, with power plants and oil marketing companies holding the majority.
To maintain smooth operations, refineries have chosen to export their stock, despite lower prices in the global market. Local consumption of fuel oil is not expected to improve soon, leading to unattractive market conditions for refineries. Power generation from fuel oil has also significantly decreased compared to the previous year.
