HSD imports cross 1m tonnes as demand surges

KARACHI: Pakistan imported over one million tonnes (MT) of high-speed diesel (HSD) in the first half of the current fiscal year, driven by a surge in demand.

According to data compiled by the oil industry, the country imported 1.1MT of HSD during July-December of this fiscal year as diesel demand recovered significantly. The oil sector attributed this recovery to the government’s crackdown on smuggling of Iranian diesel, which has been significantly curtailed following calls from refineries and oil marketing companies to protect the legal oil industry.

Industry officials also linked the rebound in HSD demand to the harvest season, which took place during October and November. Data revealed that HSD sales grew by 9.0 per cent to 3.4 MT in the first six months of the fiscal year, compared to 3.1 MT during the same period last year. However, sales were initially sluggish, falling by 8.0 per cent in July and 12 per cent in August.

The trend reversed in September, with HSD sales surging by 23 per cent, maintaining momentum in subsequent months. Sales rose by 22 per cent in both October and November, and 12 per cent in December.

To meet the increased demand, Pakistan imported substantial quantities of HSD, with over 330,000MT arriving in both November and December. Significant imports were also recorded in other months of the fiscal year. The government allowed Pakistan State Oil (PSO) and private oil marketing company Gas & Oil (GO) to import HSD to address the growing demand.