ISLAMABAD: The government has notified an immediate ban on import of furnace oil except for K-Electric.

According to a press release issued by the Ministry of Petroleum on Tuesday, the government has ordered all the refineries to utilize billions of rupees in annual deemed duty, they collect on petroleum products to upgrade their refining facilities.

Oil refineries have also been ordered to immediately reduce the Furnace Oil production to a minimum level and enter into commercial agreements with power producers for utilization of their capacity for its storage.

In future, all refineries will ensure that   production of furnace oil is minimal byproduct of Crude Oil processing.

The oil refineries have also been directed to undertake production of additional storage facilities as well as utilization of the proceeds of deemed duty for up gradation and modernization of their facilities.