KARACHI, Oct 17: As many as 10,000 tons of petrol, produced by a local refinery, will be exported in a day or two since petrol has become surplus in the country due to its falling consumption as a result of frequent conversion of vehicles to CNG and LPG.

Refinery sources said that Pak Arab Refinery Limited (Parco) had issued a tender on September 5, 2006 for the export of 10,000 tons of petrol and the company had intended to export it by late September or early October.

The price on which the quantity is being exported could not be known but sources said that price assessment is based on Arab Gulf 95 RON quotation.

Sources said that refineries are already running on a slow throughput especially in the category of petrol owing to persistent fall in its off-take at the petrol pumps.

Sources said that the ship, which will be carrying Parco’s petrol, will also be loading 10,000 tons of naphtha of Pakistan Refinery Limited (PRL) for export and 2,000-2,500 tons of naphtha of another local refinery.

Phenomenal increase in petrol prices has forced vehicle owners to consume other cheaper mode of fuels like CNG and LPG. Petrol was selling at Rs33.81 on June 2001 as compared to current price of Rs57.70 per litre, showing a jump of 71 per cent.

Because of rising prices, petrol sales in Pakistan plunged by 10.5 per cent in 2005-2006 to 1.183 million tons from 1.322m tons in 2004-2005. In 2003-2004, petrol sales were 1.25 million tons.

The number of CNG vehicles has increased sharply from 500 in 1990-91 to 280,000 in 2000-01 and then to 700,000 by March 2005. Currently over 1.1 million CNG-fitted vehicles are plying on the country’s roads. Some 1,079 CNG stations are operating in the country while the government has already issued licence to 3,811 more stations out which 119 stations are in various stages of construction.

Fuel pumps now witness a few number of vehicles at the petrol dispensers while CNG-fitted cars are seen in long queues. More than 70 per cent cars at the local assembly plants are being rolled out in CNG version instead of petrol. Though the auto makers are also producing new generation petrol engine cars in 1300-1800cc that are more fuel efficient.

Petrol sales mainly rely on motorcycles whose production has increased over 800,000 units in 2005-2006.

The government eats up Rs27.29 per litre on petrol (Rs57.70 per litre) in shape of Rs18.88 petroleum development levy (PDL), Rs7.53 as general sales tax (GST) and Rs0.88 paisa as excise duty.