Furnace oil price has shot up by 5 percent to an all-time high level of Rs 26,745 per ton in the domestic market in the wake of soaring international prices, dealers said on Monday.
However, well-placed sources in the oil industry told Business Recorder that the price of furnace oil was steadily increasing in the domestic market during the last few months despite the fact that there wasn''t any significant change in the pattern of international prices during the same period.
Local oil marketing companies on Monday increased the price of furnace oil by Rs 1344.35 per ton, as a result which it reached an all-time high level of Rs 26,745.55 per ton as compared to Rs 25,401.20 per ton.
It has been observed that during the last four months, the furnace oil price has been increased on at least on five different occasions. In mid-March, the furnace oil price stood at Rs 22,814.35 per ton in the local market, whereas on March 16 it went up by Rs 848.70 per ton to Rs 23,663.05 per ton.
On April 1, the oil marketing companies increased furnace oil prices by Rs 786.60 per ton; on April 16, by Rs 1,949.25 per ton; on May 2, prices surged up by Rs 297.80 per ton; and on May 16, went up by Rs 48.85 per ton. Meanwhile, the oil marketing companies decreased the prices of furnace oil by Rs 142.60 per ton.
Furnace oil generally used by Wapda and other private sector''s independent power producers for power generation purposes, while it is also a major raw material of cement, fertiliser, textile industry, rolling mills, and other industries.