The prices of furnace oil, a basic raw material of power generation and industries, has reached all time high level of Rs 37,759 per tonne, following skyrocketing prices in the international market, dealers here said.
"Two leading oil marketing companies - Pakistan State Oil (PSO) and Shell Pakistan - on Thursday announced to raise the furnace oil prices in the domestic market," they added.
They said the oil marketing companies increased the furnace oil prices by Rs 3,750 per tonne to peak level of Rs 37,759 per tonne, previously stood at Rs 34,009 per tonne in the local market.
"Implementation of the new prices would be stared from Friday," they added. They further said the oil marketing companies had raised the prices of furnace oil twice during last 16 days, as earlier on November 1, the companies also raised some Rs 4,210 per tonne.
While overall furnace oil prices had gone up by Rs 7,960 per tonne during the month, which stood on September 31 at Rs 29,798.80 per tonne, dealers said
They said that crude oil price throughout the world was rapidly increasing, while the supply of the commodity had not been increased by the Opec. "We are expecting further increase in furnace oil price next month as the prices in the world markets are still surging," dealers said. Earlier, furnace oil price on October 17 had increased the price by Rs 192.05 per tonne to Rs 29,798.80 per tonne, while on October 1, it was shot up by Rs 1,200 to Rs 29,606.75 per tonne.
During last month, the furnace oil prices had been raised thrice, thus raising the price by Rs 5,602 per tonne, they added. During last 10 weeks, the oil marketing companies had raised furnace oil price, which was Rs 27,163 per tonne during mid-September, by around Rs 10,596 per tonne, raising the price to Rs 37,759 per tonne, said the dealers.
They said that rising furnace oil prices would put a negative impact on the cost of production and on this base tariff of power could be revised. It may be mentioned here that furnace oil generally used by Water and Power Development Authority (Wapda) and other private sector''s independent power producers, while it is also a major raw material of cement, fertiliser, textile industry, rolling mills, and other industries.
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