Government ends exemption given to K-Electric to import furnace oil through PSO

ISLAMABAD: After protests by local refineries, the government has notified a complete ban on import of furnace oil, ending an earlier exemption allowed to K-Electric.

The decision was reportedly taken at a recent meeting of the Cabinet Committee on Energy (CCoE), ­presided over by Prime Minister Imran Khan, Dawn reported.

Government had ordered a ban on import of furnace oil last month, but the Pakistan State Oil (PSO) was granted an exemption in the case of the furnace oil. However, local refineries protested over the decision. The PSO has a long-term furnace oil supply contract with the KE.

According to reports, Chairman of Oil Companies’ Advisory Council (OCAC) Adil Khattak who was also managing director of Attock Refinery wrote letters to the petroleum division questioning the justification for ­allowing furnace oil imports for KE which was the only constant consumer with 4000-5000 tonnes per day consumption.

The matter was brought to the notice of Prime Minister Imran Khan at a CCoE meeting who ordered “to ­continue the ban on import of furnace oil which will also apply to K-Electric as well”, says a notification issued on January 23, 2019. [the_ad id=”31605″]

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