KARACHI, Jan 20: The Pak Arab Refinery Limited (Parco) has, so far, exported around 40,000 tons of petrol through four shipments from October 2006 till now, out of planned export of 80,000 tons by the end of current fiscal.

Petrol is being exported after falling consumption in Pakistan because of its rising prices in the last few years, coupled with huge conversion of vehicles to CNG and LPG.

Parco had exported 300,000 tons of petrol in 2001-02 and earned $75 million at a price ranging between $235 and $260 per ton at that time, the sources said.

However, the government has reduced the petrol price by Rs4 per litre on Jan 1 and more price cuts are expected in the next six months depending on falling international prices of Light Arab Crude, coupled with election year in Pakistan in which the government will try hard to win support of mass.

When a source in Parco was approached to enquire about any government’s intention of discontinuing petrol export in case some slight surge in petrol demand occurs in the next few months, he said “so far there has been no intimation from the government to discontinue petrol export.”

He said export will continue as the Refinery has been issuing tender for 10,000 tons of export every month since Sept 5, 2006.

“Even if the export continues in future, there will be no shortage of petrol in the country as it is currently surplus,” the source said. However, Parco will discontinue petrol export from March 15 to April 15 due to annual shutdown of the refinery, the source added. Out of one million tons consumption of petrol in the country, the domestic share of Parco is 50 per cent.

“If somebody has invested Rs30,000 in installing CNG kit in his car or purchased locally assembled CNG fitted kit by paying the same amount, how can he immediately switch over to petrol after a Rs four per litre cut,” the source, said, adding, cut in petrol price would not boost petrol demand overnight as it is still 50pc costlier than CNG in terms of money.

It could not be known as to how much foreign exchange is being earned by the Parco through 40,000 tons of petrol export.

Some little quantity of petrol is also being exported to Afghanistan through land routes, but the bulk is being sent by Parco through sea routes. So far, 40,000 tons of petrol has been exported to the Middle East by the Refinery by floating international tenders.