Govt to import 128,000 tonnes of diesel in January

KARACHI: The country will import 128,000 tonnes of high-speed diesel (HSD) in January 2024 following a decline in its demand.

The Oil and Gas Regulatory Authority (Ogra) has approved the import of 90,000 tonnes of HSD by Pakistan State Oil (PSO) and 38,000 tonnes by Gas & Oil (GO) marketing company for the upcoming month. The decision was made during the recent product review meeting (PRM), which evaluated the demand and supply forecast for January.

Industry insiders attribute the recent drop in HSD demand to the completion of the harvesting season, which had significantly driven up consumption in November. The PRM projected HSD demand to reach approximately 580,000 tonnes in January, a sharp decline from the 800,000 tonnes recorded in November.

“The projected drop in HSD demand has led to a reduced import requirement for January,” oil sector representatives said, adding that even local refineries did not oppose the import approval during the meeting.

Pakistan imported nearly 800,000 tonnes of HSD during the first five months of the current fiscal year, with November accounting for the highest monthly import of 332,000 tonnes due to heightened demand from the harvesting season. In contrast, imports were lower earlier in the fiscal year, with 98,000 tonnes in July, 147,000 tonnes in August, 131,000 tonnes in September, and 90,000 tonnes in October.

HSD consumption for the fiscal year ending June 30, 2024, stood at eight million tonnes. During the first five months of FY25, overall petroleum product sales rose by 5.0 per cent year-on-year (YoY) to 6.75 million tonnes, compared to 6.45 million tonnes during the same period last year.

Product-wise, motor spirit (MS) and HSD sales increased, while furnace oil (FO) volumes declined. MS sales reached 3.18 million tonnes, HSD stood at 2.89 million tonnes, and FO sales totalled 0.31 million tonnes.

In November FY25, petrol offtake increased by 17 per cent YoY to 0.67 million tonnes, while HSD sales jumped by 21 per cent YoY to 0.79 million tonnes. For December, Ogra had approved the import of 200,000 tonnes of HSD by PSO and GO.