Import of petroleum products drops 26pc in Jul-Nov

KARACHI: The import of petroleum products in the country plunged by 26 percent in the first five months of the current financial year on the back of depressed demand of petroleum products due to slowdown in economic activities and high prices.

During the July-November period of this fiscal, petroleum products slipped to 7.035 million tonnes as compared with 9.537 million tonnes in the same period during the last financial year. Crude oil imports in five months of FY23 fell by 16 percent to 3.268 million tonnes against 3.883 million tonnes of the same period last year.

Diesel imports dropped by 44 percent to 0.897 million tonnes in the period under review as compared with 1.609 million tonnes in the same period last

year.

On the other hand, gasoline imports dropped by 20 percent to 2.329 million tonnes against 2.915 million tonnes of the same period last year. The import of furnace oil fell by 52.5 percent to 0.530 million tonnes against 1.117 million tonnes of the same period last year.

According to industry people, imports of petroleum products declined due to higher domestic price, fall in industrial demand, slower inter-province travelling

and lower truck and bus activities due to flood ridden areas.

The low consumption of petroleum products

has been reflected from their sales in the five months of this fiscal, which plunged to 7.7 million tonnes,

from 9.6 million tonnes recorded in the same period last year.

During the first five months, product-wise data showed a decline in all categories as off-take of petrol, hi-speed diesel, and furnace oil settled at 3.21 million tonnes, 2.84 million tonnes, and 1.32 million tonnes, respectively.

According to Arif Habib Limited (AHL), the decline in the sales of petroleum products was because of economic headwinds, lower furnace oil-based power generation, and higher petroleum prices.

Economic activities have been severely hit by

the devastating floods in the southern part of the

country and an economic slowdown on account of import curbs, which were put in place to save the severely depleted foreign exchange reserves. The global recession also has had a bearing on Pakistan’s domestic economy.