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Business & Finance

Oil consumption declines

  • Petrol and diesel consumption declines 21% and 44% respectively
Published July 23, 2022
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ISLAMABAD: The country’s consumption of two key petroleum products, Petroleum Motor Gasoline (PMG) or petrol and HSD, has declined by 21 per cent and 44 per cent, respectively due to measures taken by the government to curtail imports and massive increase in their prices by the incumbent government.

Industry sources told Business Recorder that daily consumption of diesel has reduced to 13,000 MT per day from 23,000 MT whereas consumption of petrol has declined to 19,000 MT per day from 24,000 MT.

“If the current pattern of consumption continues during the remaining days of current month, then petrol stock is enough for 32 days and HSD for 62 days,” said industry sources. Presently, the stock of PMG stood at 695,000 MT whereas stock of HSD was 760,000 MT.

On July 21, 2022, addressing a press conference on Minister of State for Petroleum and Natural Resources, Dr Musadik Malik claimed that the stocks of HSD are enough for 66 days while petrol stock was for 34 days, a claim that was made in spite of the fact that the regulatory requirement of stock is of 20-22 days.

Petroleum consumption to come down

He maintained that sale of PMG was 818,000 MT in July 2021 which has reduced to 580,000 MT in July 2022, which is approximately 30 per cent whereas sale of HSD has slashed by 45-50 per cent from 730,000 MT in July 2021 which is now about 400,000 MT. “The government has managed things in a way that import bill is reduced without effecting the stocks of petroleum products,” he added. POL import was $ 1.4 billion in June 2022, which was significantly less than the pattern set in the previous four or five months.

In June 2021, petrol sale was recorded at 778,000 MT which reduced to 704,000 MT in June 2022, showing a substantial reduction. Likewise, HSD sale was 789,000 MT in June 2021 which has declined to 712,000 MT in June 2022. The country’s import bill has reduced substantially due to reduction in consumption of petrol and diesel.

When contacted, OGRA spokesperson confirmed that the sale and stock figures shared by the Minister of State for Petroleum and Natural Resources were accurate.

Copyright Business Recorder, 2022

Comments

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Nad Jul 24, 2022 04:26pm
The reason is high prices of petrol and diesel, not govt. Progress. People not using vehicles as they used to. People have reduced their tours and started more time working from homes. People in car have started using motorcycle. Big cars like SUV reduced to small cars.
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Pervez Jul 24, 2022 07:09pm
@Nad, This is called austerity. No more luxuries.... Pay the market price for what to consume. What is wrong with it ? The objective is to bring down the import bill....
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M.kamran Jul 24, 2022 10:37pm
With public it is duty of national leaders and politions reduse the use of petrol because everyone have approximately 5 to 6 cars and heavy jeeps. It's also suggest Pakistan sciencest to improve it's technology and bring dyminic changes and improve source.
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Mohsin Alim Qazi Jul 25, 2022 04:11am
It is difficult to explain how diesel consumption reduced by 44%. Commercial transportation has not slowed down visibly. Factor in higher load shedding and use of genset. Only explanation and my guess: Lower smuggling to Afghanistan due to price.
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Muhammad Sauban Shikoh Jul 25, 2022 07:51pm
@Mohsin Alim Qazi, due to harvesting season in May, consumptionwas higher in May but fell in June.
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Kamran Khan Jul 25, 2022 08:53pm
@Pervez, what about exports which are dependant on oil cost and competitiveness.....don't be stooge of any political parties
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Waqas Jul 26, 2022 08:23am
Now petroleum prices are going to increase or decrease in the next month?
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M Sajjad Haider Jul 26, 2022 10:43am
Not a good sign bcos it reflects your industry production and job creation and its reflecting by extensive drop in exports and f reserves. Less consumption of fuel is not a healthy sign. I will take it as i was spending Rs. 300 and earning Rs.1000 and now im spending Rs.100 and earning Rs.400, net result is Loss. THIS IS WHAT HAPPENING IN PAKISTAN
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