SINGAPORE, Oct 6: Pakistan has extended an import ban on fuel oil until the end of November because of increased hydropower generation and natural gas supply, industry sources said on Monday.

Pakistan’s Ministry of Petroleum first announced the import ban in August when high inventories prompted refineries to cut production to about 60 per cent of capacity from 80 per cent.

“Our inventories are still high and there’s lots of hydropower available, so the ban on imports has been extended to the end of November,” said an industry source in Karachi who asked not to be identified.

Fuel oil is facing increased competition from natural gas supplied to the domestic market by Sui Southern Gas Company Ltd and Sui Northern Gas Company.

In August, fuel oil stocks were pegged by Pakistan trade sources at 90 days of supply, up from the normal 20-25 days.

Pakistan imported five million tons of fuel oil in the fiscal year to June to meet annual demand of about 8.5 million tons. The difference is met by domestic production.—Reuters