Petroleum consumption rises 7%

KARACHI: Petroleum product consumption in Pakistan reached 13.17 million metric tonnes (MMT) during the first nine months of the current fiscal year, reflecting a year-on-year increase of 7.04 per cent compared to 12.3 MMT in the same period of FY2024.

According to the Economic Survey 2024-25, consumption trends across various economic sectors were influenced by shifts in industrial activity, power generation needs, transportation demand and public and overseas operational requirements.

The transport sector remained the dominant consumer, with usage rising by 7.99 per cent -- from 9.76 MMT in July-March FY2024 to 10.54 MMT in the same period of FY2025 -- accounting for 80 per cent of total demand. This increase reflects higher mobility, a rebound in trade and logistics, and stronger fuel demand from road transport and commercial vehicles.

In contrast, industrial consumption declined by 7.35 per cent, falling from 815.32 thousand metric tonnes (MT) to 755.4 thousand MT (7.0 per cent of total demand). This drop is likely due to reduced output in certain energy-intensive sub-sectors or a shift towards cheaper energy alternatives such as natural gas and renewables, the survey noted.

The power sector recorded a sharp 77.68 per cent year-on-year decline in petroleum use, down to just 116.21 thousand MT during July-March FY2025. This steep reduction is attributed to a pivot towards hydropower, nuclear, coal (particularly Thar coal), and imported LNG in power generation, reducing dependence on furnace oil.

The domestic sector saw a modest rise in consumption of 7.34 per cent, while agriculture usage edged down by 3.35 per cent -- likely due to improved mechanisation and slightly lower seasonal demand. Meanwhile, petroleum use in the government sector grew by 3.27 per cent.

The overseas sector -- which includes bunker sales and other exports -- posted a significant 57.18 per cent increase, from 948.03 thousand MT in July-March FY2024 to 1,490.11 thousand MT in the same period of FY2025. This surge is largely driven by increased shipping activity and higher refuelling demand at Pakistani ports.

During the nine-month period, Pakistan imported 12.53 MMT of petroleum products, compared to 11.14 MMT in the same span last year -- marking a 12.5 per cent rise in volume. However, the import bill remained nearly flat at $8.4 billion, slightly below the $8.44 billion recorded in July-March FY2024. This reflects a combination of higher volumes offset by lower global oil prices and more efficient procurement.

Motor Spirit (MS) imports rose by 11.3 per cent in volume to 3.98 MMT, but the import value dropped by 5.1 per cent to $3.04 billion, down from $3.2 billion last year. This divergence underscores the impact of softening global prices despite increased domestic demand.