Government bans import of furnace oil.

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Refineries will use deemed duty, they collect on petroleum products ,to upgrade their refining facilities.

In future, all refineries will ensure that Furnace Oil (FO) production is minimal byproduct of Crude Oil processing.

The government has notified an immediate ban on import of furnace oil and ordered all the refineries to utilise billions of rupees in annual deemed duty, they collect on petroleum products to upgrade their refining facilities. The government also ordered immediate reduction in the FO production to a minimum and enter into commercial agreements with power producers for utilisation of their capacity for FO storage.In future, all refineries will ensure that FO production is minimal byproduct of Crude Oil processing.The oil refineries should undertake production of additional storage facilities as well as utilisation of the proceeds of deemed duty for upgradation/modernisation of their facilities.The government had imposed ban on import of FO with immediate effect except for K-Electric.

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