AGL 22.90 Decreased By ▼ -1.83 (-7.4%)
AIRLINK 103.99 Decreased By ▼ -7.11 (-6.4%)
BOP 5.36 Decreased By ▼ -0.18 (-3.25%)
CNERGY 3.86 Decreased By ▼ -0.04 (-1.03%)
DCL 8.02 Decreased By ▼ -0.43 (-5.09%)
DFML 39.10 Decreased By ▼ -3.15 (-7.46%)
DGKC 86.95 Decreased By ▼ -2.65 (-2.96%)
FCCL 22.70 Decreased By ▼ -0.20 (-0.87%)
FFBL 40.59 Decreased By ▼ -1.39 (-3.31%)
FFL 8.89 Decreased By ▼ -0.15 (-1.66%)
HUBC 153.50 Decreased By ▼ -8.70 (-5.36%)
HUMNL 10.65 Decreased By ▼ -0.70 (-6.17%)
KEL 4.55 Decreased By ▼ -0.23 (-4.81%)
KOSM 3.90 Decreased By ▼ -0.16 (-3.94%)
MLCF 37.50 Decreased By ▼ -1.45 (-3.72%)
NBP 49.00 Decreased By ▼ -1.60 (-3.16%)
OGDC 134.15 Decreased By ▼ -2.96 (-2.16%)
PAEL 26.15 Decreased By ▼ -2.40 (-8.41%)
PIBTL 6.07 Decreased By ▼ -0.18 (-2.88%)
PPL 116.79 Decreased By ▼ -6.01 (-4.89%)
PRL 23.55 Decreased By ▼ -0.75 (-3.09%)
PTC 12.90 Decreased By ▼ -0.84 (-6.11%)
SEARL 57.25 Decreased By ▼ -2.80 (-4.66%)
TELE 7.45 Decreased By ▼ -0.31 (-3.99%)
TOMCL 35.74 Decreased By ▼ -3.66 (-9.29%)
TPLP 8.50 Decreased By ▼ -0.26 (-2.97%)
TREET 15.68 Decreased By ▼ -0.52 (-3.21%)
TRG 56.40 Decreased By ▼ -3.60 (-6%)
UNITY 33.40 Decreased By ▼ -1.00 (-2.91%)
WTL 1.18 Decreased By ▼ -0.04 (-3.28%)
BR100 8,433 Decreased By -274.3 (-3.15%)
BR30 26,639 Decreased By -1159 (-4.17%)
KSE100 80,118 Decreased By -1722 (-2.1%)
KSE30 25,681 Decreased By -584.1 (-2.22%)

As per Pakistan Oil Report 2022-23 by OCAC, the petroleum product consumption in FY23 fell by 25 percent - after rising continuously for two years by 10 and 14 percent year-on-year in FY21 and FY22 respectively (see illustration from the report). This decline in petroleum consumption continued in 2024 as the volumes were seen falling by 11 percent year-on-year in 9MFY24 with all three key petroleum products posting a decline in volumes during the period: Furnace oil witnessed a sharp decline of around 52 percent year-on-year, while high-speed diesel and motor spirit declined by 5 percent, year-on-year, each.

Recent reports suggest that the Oil Companies Advisory Council has revealed that smuggled petroleum products are causing a loss of over $35 million to the economy every month – adversely affecting their profitability. The research note by AKD Securities suggests the recent influx of smuggled fuel, particularly through Taftan creates ullage issues for the local refineries.

Smuggling of petroleum products particularly via Iran keeps coming back in the news as there has never been a long-term solution to the menace. It is one of the factors behind the decline in volumetric sales by oil marketing companies.

The oil marketing sector has been falling low in volume over the past year and a half at least. Of late, the fall in oil and petroleum consumption has hit the sales volumes of oil marketing companies amid the economic downturn and political chaos. Besides the weak economic activity, the decline in volumetric sales has been due to falling furnace oil consumption by the power sector and continued infiltration by the Iranian diesel and petrol.

Comments

200 characters
Gnay Aly Apr 09, 2024 05:12am
By the way whose duty to stop OIL
thumb_up Recommended (0) reply Reply
Safdar Lodi Apr 09, 2024 11:30am
Economy dominated by smugglers so inflation increasing day by day. کوئی عمرہ پہ ھے کوئی کرکٹ میں گھسا ھوا ھے۔ And ship is sinking
thumb_up Recommended (0) reply Reply