Furnace oil: Refineries jack up prices, imported oil cheaper
Analysts see no immediate impact on electricity rates.
KARACHI:
Local refineries have once again raised furnace oil rates, while the price of imported high speed furnace oil (HSFO) has eased.
The price of imported HSFO fell by Rs165 to Rs53,304 per ton, according to data released by a local oil marketing company. However, the price of locally refined furnace oil has surged to over Rs56,600 per ton. Pak Arab Refinery increased the rate of its HSFO shipments by Rs1,816 to Rs56,672 per ton. Similarly, National Refinery and Pakistan Refinery have also notched up their prices by Rs1,833 to Rs53,926 per ton.
“Certain orders for imported furnace oil have been secured at competitive prices and the fall in rates for this fortnight reflects this,” commented an analyst.
Meanwhile, energy sector analyst Nurali Barkatali added, “International oil prices are on the rise and if crude rates cross $91 per barrel, we could see prices rally over the $100 level.”
Electricity rates
“At present, the demand for electricity in the country stands around 11,000 megawatts per hour,” asserted Barkatali. He explained that this is less than the average demand of about 13,000 megawatts per hour, usually expected during winter months.
“Of this about 5,500 megawatts is being supplied by hydroelectric power,” he said, adding that “Consequently, electricity rates should not be immediately impacted by the increase in furnace oil prices.”
Published in The Express Tribune, December 16th, 2010.
Local refineries have once again raised furnace oil rates, while the price of imported high speed furnace oil (HSFO) has eased.
The price of imported HSFO fell by Rs165 to Rs53,304 per ton, according to data released by a local oil marketing company. However, the price of locally refined furnace oil has surged to over Rs56,600 per ton. Pak Arab Refinery increased the rate of its HSFO shipments by Rs1,816 to Rs56,672 per ton. Similarly, National Refinery and Pakistan Refinery have also notched up their prices by Rs1,833 to Rs53,926 per ton.
“Certain orders for imported furnace oil have been secured at competitive prices and the fall in rates for this fortnight reflects this,” commented an analyst.
Meanwhile, energy sector analyst Nurali Barkatali added, “International oil prices are on the rise and if crude rates cross $91 per barrel, we could see prices rally over the $100 level.”
Electricity rates
“At present, the demand for electricity in the country stands around 11,000 megawatts per hour,” asserted Barkatali. He explained that this is less than the average demand of about 13,000 megawatts per hour, usually expected during winter months.
“Of this about 5,500 megawatts is being supplied by hydroelectric power,” he said, adding that “Consequently, electricity rates should not be immediately impacted by the increase in furnace oil prices.”
Published in The Express Tribune, December 16th, 2010.