Furnace oil prices rise Rs783 per ton

Following successive increases in international fuel prices, Furnace oil prices increase.

KARACHI: Furnace oil prices have increased by Rs783 per ton following successive increases in international fuel prices.

Oil marketing companies have informed The Express Tribune that furnace oil prices have now reached Rs47,857 per ton. Local refineries have hiked prices of fuel simultaneously. Pakistan Refinery and National Refinery have increased rates by Rs356 to Rs47,610 per ton, while Pak- Arab Refinery has hiked prices by Rs484 to Rs49,891 per ton.

Analysts explained that Japan and China have posted impressive economic growth which drove expectations of greater demand for fuels. Brent crude oil prices are currently hovering at just under $80 per barrel on the London exchange while demand for light sweet crude oil has also driven its price to above $76 per barrel.

While investors are cautiously eyeing demand from western economies where economic recovery has lagged, the current rally in oil sustained long enough to warrant an increase in local furnace oil prices.

Published in The Express Tribune, October 2nd, 2010.