Islamabad [Pakistan], January 21 (ANI): Oil refineries in Pakistan have warned the government of a looming shutdown of their operations in a couple of weeks due to high and yet rising stocks of furnace oil, a media report said.

The refineries have reported to the government that the oil industry was currently holding about 4,00,000 tonnes of furnace oil. In addition, 3,00,000-tonne stocks were lying unutilised at various power plants, reported Dawn citing informed sources.

The Power Division, on the other hand, had placed a requirement of furnace oil for February at just 45,000 tonnes for the power sector. The sources said the Petroleum Division had advised the Pak-Arab Refinery (PARCO) at Multan to export one cargo of about 50,000 tonnes of furnace oil during the current month, said the Pakistani publication.

Pak-Arab Refinery Company Limited (PARCO) has, however, told the government on Thursday that it had serious concerns over the low demand projected by the power sector.

There will be a high risk of closure of refineries in February in the absence of a significant upward revision in demand, PARCO said further.

The total monthly furnace oil production of the refineries was more than 200,000 tonnes, said PARCO, adding that this is on top of about 700,000 tonnes currently in stocks of refineries, marketing companies and power plants.

Calling for an immediate need to address the critical issue of high furnace oil stock levels, the refineries have demanded an urgent high-level meeting on the issue to work out a firm demand for furnace oil for February to enable the industry to plan refinery operations.

Due to high furnace oil stocks, at least three refineries recently faced shutdowns and others had to go for production cuts, according to Dawn. (ANI)