Imports of the overall petroleum group have witnessed a decline of 12.06% during the first seven months of the ongoing financial year 2023-24, as revealed by data released by the Pakistan Bureau of Statistics (PBS). From July to January (2023-24), total petroleum group imports amounted to $9,332.322 million, down from $10,611.727 million in the corresponding period the previous year.
Within the petroleum category, imports of petroleum products notably decreased by 25.94%, falling from $4,889.799 million to $3,621.420 million. Meanwhile, imports of petroleum crude witnessed a smaller decline of 3.96%, dropping from $3,100.481 million to $2,977.671 million during the review period.
On a year-on-year basis, petroleum group imports showed a marginal increase of 0.03% in January 2024 compared to January of the previous year, rising from $1,326.205 million to $1,326.540 million. However, on a month-on-month basis, petroleum imports into the country dropped by 14.52% in January 2024 compared to December 2023 when imports stood at $1,551.870 million, according to the data provided.
Oil industry officials say that the sale of petrol witnessed an average decline of 6%, whereas high-speed diesel saw a 7% decrease during the first seven months of the current financial year. They attribute this decline in sales to inflation and economic slowdown.
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Although the prices of petroleum products have substantially declined, they remain relatively expensive, contributing to the decrease in imports. Refineries have also raised concerns over the rise in smuggling of petroleum products from Iran, which has impacted legal industry sales.
Despite the overall decline in petroleum imports, imports of Liquefied Natural Gas (LNG) experienced a 4.82% increase, rising from $2,192.489 million to $2,298.144 million. This increase is attributed to additional LNG cargoes arranged to meet rising demand, particularly during the recent winter season.
Meanwhile, the import of Liquefied Petroleum Gas (LPG) grew by 1.47%, reaching $434.991 million compared to $428.687 million in the corresponding period of 2022-23, driven by increased demand during the winter months due to natural gas shortages for domestic consumers.
Published in The Express Tribune, February 20th, 2024.
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