Furnace oil sees price cut, people eye relief in power tariff
The analysts have urged the government to use hydel resources for cheaper electricity production
ISLAMABAD (Dunya News) – Furnace oil has seen decrease in price deriving people’s attention as likelihood of cut in power tariff strengthens, Dunya News reported Tuesday.
Furnace oil price decreased on November 1. Industry sources said that indigenous furnace oil dropped by at least Rs 1,242 to Rs 37,881 per ton whereas imported oil saw a larger cut of Rs 2,389. The imported product stands at Rs 35,874 per ton.
Following plunge in international market, furnace oil has dropped at least Rs 13,000 per ton since start of the fiscal year.
Experts have said that the relief of power price cut is not being delivered at the grassroots. The analysts have urged the government to use hydel resources for cheaper electricity production.
LPG cut
Earlier, international markets have seen rise in LPG prices resultantly, Rs 8 per kilogram (Kg) is added in local markets.
The gas stood at USD 363 per metric ton in international market however, it surged to USD 420 with USD 57 increase. In local markets, domestic cylinders have seen Rs 100 increase while commercial Rs 400.
Domestic customers will get cylinders for Rs 970 in Karachi and Lahore.
The first quarter of the fiscal year (FY) 2015-16 has seen 12 percent rise in average daily production of the LPG while crude oil’s production has fallen by 8 percent.
Statistics issued by the government show that production of crude oil per day in July-September period stood at 84,600 barrels. The production rate is at least 8 percent less than the first quarter of the last FY.
Industry experts are of the opinion that Tal Block’s outage caused the decrease in oil production. It should be mentioned here that Kohat’s Tal Block was shut down for as many as 20 days consecutively due to maintenance.
Kohat adds at least 20 percent to the local crude oil production.
On the other hand, LPG production remained steady at 4.2 billion-square-feet per day. The gas supply in local areas was improved during the last three months owing to the handsome production.
The statistics suggest that the production touched 1,400 ton per day with a 12 percent increase from the last FY’s quarter.
