ISLAMABAD: The Oil Marketing Companies (OMCs) on Thursday raised furnace oil prices by Rs1,000 per ton for this fortnight citing surge in international prices.

The state-owned Pakistan State Oil (PSO), the country’s largest OMC, announced that the new prices for High Sulphur Furnace Oil (HSFO) would range from Rs40,792 to Rs44,451 per ton effective from July 1. The company was offering lowest rates for HSFO import at Karachi Port and the highest at Morgah Depot, Rawalpindi.

‘Average crude oil price has gone up by $5 to $69 per barrel in the Gulf markets during the last fortnight,’ said a refinery official.

The prices of Light Sulphur Furnace Oil (LSFO) were also jacked up to Rs39,592 per ton.

Only Attock Oil Refinery produces around 40,000 tons of LSFO per month and around 100,000 tons are being imported to meet the demand.

Wapda and Hubco mainly consume HSFO while Kot Addu Power Company uses LSFO for power generation.

With 82 per cent share in furnace oil market, the PSO is the largest supplier to the power generation plants in both the public and private sectors.

‘The increase is also a cause of concern for the PSO owing to already high circular debt issue and the power generation companies would find it difficult to pay the furnace oil bills,’ said a senior PSO official.