The higher hydropower generation is seasonal, due to heavier rainfall from the monsoon season that started at the end of July, they added.
"Rain water fills up the dam, hence generating more electricity. But demand is also lower now because there is less activity during the monsoon," said a Middle East-based trader.
Pakistan bought 512,704 tonnes of high-sulphur fuel oil (HSFO) and 63,467 tonnes of low-sulphur fuel oil (LSFO) for August, with the total volume falling by 24 percent from July, data from its Oil Companies Advisory Committee showed.
Fuel oil demand, mainly for power generation, peaked during the summer in June, hitting all-time high levels of nearly 850,000 tonnes, amid severe power shortages.
Import volumes have fallen since, dropping by 10 percent for July to 757,660 tonnes, the data showed.
Most of Pakistan's power supply comes from hydropower, accounting for about 40 percent of total electricity generation, while fuel oil-powered thermal plants contribute about 15 percent.
Both sources of electricity come from government-owned utilities while the rest comes from independent power producers.
Pakistan continues to experience daily blackouts, which can last for 10-12 hours for big cities and 18-20 hours in smaller towns, due to a shortfall of about 6,000 Megawatts (MW) in generation capacity, as its utilities are still unable to meet demand.
Its fuel oil imports are expected to pick up towards the end of the year, to meet peak demand for heating during the winter season.
Copyright Reuters, 2011