Some media reports suggested that while a situation of serious electricity shortfall is aggravating, concerned ministries/departments are showing less interest to handle the situation. The instructions were passed to generate electricity using fuel oil whose stocks have also been depleting fast in the country, raising a situation where Karachi in particular and other parts of the country in general may face an increase in electricity load shedding unless some urgent measures are taken to handle the possible fallout of the situation on the common people and the industrial segments.
It has reportedly been said that about two years ago, the government had put a policy ban on the import of the furnace oil (FO). The purpose of this move was to encourage more use of RLNG for production of cheaper electricity. There was only a temporary lifting of the ban in March/April earlier this year when the import of three cargoes of FO was allowed to manage an increased demand of electricity in the holy month of Ramazan and later the festive season of Eid.
It was also reported that the Ministry of Energy had instructed power generation companies to run FO-based power plants to meet the electricity demand from the domestic and industrial consumers due to rise in the mercury. The Petroleum Division refuted the reports and its spokesperson clarified that refineries are presently holding minimum stocks of furnace oil, which are being uplifted by oil marketing companies for power plants. The Petroleum Division in conjunction with the Power Division is constantly monitoring the furnace oil usage and stocks available in the country.
He also added that the Petroleum Division is also cognizant to the fact that furnace oil consumption by power plants will considerably be reduced in the forthcoming winter. In this regard, the Petroleum Division is in close coordination with all stakeholders including Power Division to utilize locally produced furnace oil for stock building at power plants and for consumption of K-Electric.
The Petroleum Division is engaging with E&P companies, refineries, Sui gas companies and Power Division to ensure optimal transportation, storage and utilization of all fuels by various stakeholders. Data revealed that local refineries produce around 7,300 metric tons of FO on a daily basis nowadays. However, the current demand of FO has surged to around 13,000 MTs.