Russian oil converts Pakistan from fuel oil importer to exporter

Russian oil exports have brought about a dramatic shift in Pakistan’s energy sector, which has begun to shift to fuel oil exports in recent months, after struggling for years to manage its import bill under a grinding economic crisis that seems at least unresolved for the time being.

The South-East Asian country has received two shipments of Ural ore — to date — under an agreement signed by the Governments of Islamabad and Moscow in recent months, which requires the former to obtain 100 thousand tons of Russian crude.

In the light of this scenario, Pak-Arab Refinery Ltd. (PARCO) launched its latest tender in July 2023 for the sale of fuel oil, highlighting the ongoing shift in market dynamics, with Islamabad moving towards exporting fuel oil instead of importing it this summer.

The Pak-Arab refinery Ltd has released 50 thousand tons of high sulphur fuel oil, which contains a maximum of 3.5% sulphur, being shipped at the port of Karachi between July 15-17 and July 2023, according to the company’s website.

The tender was closed on 5 July (2023).

Parco’s last bid for the sale of high sulphur fuel oil was closed in May (2023).