Tuesday July 23, 2024

Oil consumption dips by 7.5pc in July-March

By Tanveer Malik
June 12, 2024
A general view of an oil refinery. — AFP/File
A general view of an oil refinery. — AFP/File

KARACHI: The country has witnessed a decline in the demand for oil during the current financial year, according to the Economy Survey of Pakistan 2023-24, launched on Tuesday.

In the July-March period for FY2024, oil demand dropped to12.3 million tonnes from 13.3 million tonnes during the same period last year.

The survey suggests that this declining trend may be attributed to a decrease in demand for motor spirit (MS), high-speed diesel (HSD), and furnace oil (FO), which comprise more than 95 per cent of the total demand.

The total demand for petroleum products remained at 17.5 million tonnes during FY2023. The transport and power sectors are major petroleum consumers, covering 77.3 per cent and 10.7 per cent of total demand, respectively, according to the economic survey.

Overall, total demand for petroleum products decreased by 7.23 per cent during July-March FY 2024 compared to last year. Pakistan is a net importer of petroleum products and crude oil. Imports of petroleum products and crude oil during July-March FY2024 are around 11.0 million tonnes, valued at around $8.4 billion.

The major imported products are MS, HSD, and crude oil, with import quantities of 3,528.1 thousand tonnes, 1,233.5 thousand tonnes, and 6,169.3 thousand tonnes, respectively. During the period under review, the import value of petroleum products declined by 16.7 per cent compared to the same period last fiscal year.

Due to the government’s efforts, the country’s reliance on FO for power generation declined, leading to zero imports for furnace oil, which was $307.7 million in FY2023, according to the survey.