Pakistan’s fuel oil shipments have increased more than fivefold as the country moves away from the dirtier alternative to nuclear power for power generation.
The South Asian nation exported about 277,000 tonnes of surplus fuel oil in the year ended June, compared with 54,000 tonnes a year ago, as its use declined, according to data from the Advisory Council of Oil Companies.
Pakistan’s power generation from fuel oil fell 62% last year compared to the previous year, while coal use fell 22%, according to a report by the local securities firm Arif Habib Ltd. last month.
Meanwhile, its use of nuclear power grew by 32% during the period, according to the report. The country’s overall power generation also declined.
This has left the country with a fuel glut, with refineries such as Pak Arab Refinery Ltd. and Pakistan Refinery Ltd. rushing to export it, said Samiullah Tariq, head of research at Pakistan Kuwait Investment in Karachi.
