Pakistan Refinery Limited has stopped operations due to the suspension of the purchase of furnace oil for power plants. The decision has also been communicated to Pakistan Stock Exchange (PSX).
According to the details, the Pakistan Refinery, which has a production capacity of 7.5 million liters per day, said in its letter that the purchase of furnace oil by power plants has been stopped.
In its letter, Pakistan Refinery Limited said that due to the suspension of oil procurement, the oil storage was filled up and the refinery had to be closed due to the fear of wasting oil due to further operation of the industry.
Pakistan Refinery Limited informed the government of the decision. According to the letter, the refinery will remain closed until the situation improves. The reasons for stopping the purchase of oil by the power plants could not be ascertained.
It may be recalled that earlier, due to the shortage of LNG, the use of furnace oil for power generation saw a significant increase of 38 percent. In July, about 374,000 tons of furnace oil was used.
According to industry sources, the use of furnace oil in August increased by 38 percent to more than 515,000 tons. Due to delays in the import of LNG for power generation, power generation from furnace oil increased.
