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Imports of high sulphur fuel oil (HSFO) into Pakistan skyrocketed 133.8 percent last month as demand from the oil industry rose to its highest level since May 2007, according to data released this week.

The Oil Companies Advisory Committee (OCAC) reports HSFO imports jumped 262,861 tonnes in February 2009, reaching 459,277 tonnes versus 196,416 tonnes the previous month, as oil companies increased orders in order to meet the demand of the domestic power sector.

The figure was also 87 percent higher than in February 2008, when 245,510 tonnes of HSFO were purchased in total.

According to industry experts, the reason for the significant rise in imports was due to a cut in HSFO production by cash-starved oil refining companies, who have been producing less HSFO to meet the growing domestic demand of power generating companies.

Also, HSFO imports plummeted 200,734 tonnes at the start of the year from 397,150 tonnes in December 2008 to 196,416 tonnes in January 2009.

Meanwhile, imports of low sulphur fuel oil (LSFO) were 50,273 tonnes lower in February 2009 at 50,275 tonnes from 100,548 the previous month.

In December, the country's leading oil marketer Pakistan State Oil (PSO), purchased 300,000 metric tonnes of low sulphur fuel oil for delivery between the months of January and March 2009.

In October PSO issued a tender for the purchase of 450,000 tonnes of low sulphur fuel oil for delivery between the months of November 2008 and February 2009.

During the same month, PSO purchased thirteen 65,000-tonne fuel oil parcels via tender for delivery between October 2008 and January 2009, with the option to buy four additional cargoes.

Oil cargo trader FAL Oil was said to have been awarded the tender to sell the 845,000 to 1.105 million-tonne cargoes of high-sulphur fuel oil at premiums of $23.50 a tonne to Middle East spot quotes on a cost-and-freight (C&F) basis to Karachi.

Pakistan was plagued by domestic power shortages last year, which even led to daylight saving measures being implemented.