Domestic petroleum products output almost flat in FY2022

KARACHI: Production of energy products by local refineries remained almost flat in the last financial year compared to a fiscal ago due to shutdown of refineries in the 1st first half, triggered by lack of stockpiling by the power sector.

The output of local refineries was 10.342 million tonnes of energy products in FY2021-22 compared to 10.346 million tonnes in FY2020-21, according to data of Oil Companies Advisory Council (OCAC).

People in the oil sector said the energy products of local refineries could not post any growth because for a month local refineries remained closed down or operated at lower capacity when fuel oil was not being lifted by the power sector.

According to the data, the production of jet fuel increased to 489,023 tonnes in the year under review compared to 316,591 tonnes a year ago.

The production of kerosene oil inched up to 94,792 tonnes in the year under review against 92,732 tonnes a year back.

Petrol production remained almost flat at 2.482 million tonnes against 2.486 million tonnes a year back, with high speed diesel (HSD) also almost flat at 4.698 million tonnes compared to 4.697 million tonnes, whereas production of light speed diesel decreased 14,865 tonnes compared to 16,165 tonnes.

Domestic production of furnace oil (FO) dropped to 2.40 million tonnes compared to 2.54 million tonnes a year ago.

Lower productions were reported by the domestic refineries when the country’s oil sales jumped 11 percent to 22.5 million tonnes in fiscal year 2021-22.

The demand of the products was met through imports of petroleum products in the year under review. Imports of petroleum products witnessed a growth of 105.31 percent as it reached $23.318 billion during July-June 2021-22 (FY22) compared to $11.357 billion during the same period of last year.

The average throughput of all Pakistani refineries currently stands around 75 percent, which last year was around 60 to 65 percent, according to an industry analyst.

Analysts said currently, out of combined operational capacity of 240,000bpd (excluding Parco), listed refineries operated at 70 percent (160,000bpd) capacity despite record margins. Lower production was due to FO, which constitutes 22 percent of overall production, and was a dying product, globally as well as in Pakistan.