Prices up Rs1,841 per ton

Furnace oil prices bump up by Rs1,841 per ton following successive increases in international crude prices.

KARACHI: Furnace oil prices have been bumped up by Rs1,841 per ton following successive increases in international crude prices.

Oil marketing companies have informed The Express Tribune that furnace oil rate now stands at Rs49,698 per ton.

Meanwhile, local refineries have also hiked prices of the fuel.

Pakistan Refinery and National Refinery have increased rates by Rs2,668 to Rs50,277 per ton and Pak-Arab Refinery has increased prices by Rs2,786 to Rs52,677.

Furnace oil prices are reviewed on a fortnightly basis by Pakistan State Oil. Prices in the international market have climbed over $84 per barrel for London Brent crude oil, forcing consecutive hikes locally since mid-August.

“The shortage of natural gas supplies is likely to increase in winter months, driving the demand for furnace oil further because power providers require the fuel for producing electricity,” commented an analyst.

“This means local demand will remain strong even as prices rise,” he added.

Published in The Express Tribune, October 16^th, 2010.