Pakistan sees oil demand declines in nine months of FY 2023-24

The demand for oil declined to 12.3 million tonnes during July-March Financial Year 2023-24, down from 13.3 million tonnes during the same period last year.

According to the Economic Survey 2023-24 unveiled by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, the declining trend may be attributed to a decrease in demand for High-Speed Diesel (HSD), Motor Spirit (MS), and Furnace Oil (FO), which together comprise more than 95 percent of the total demand.

The total demand for petroleum products remained at 17.5 million tonnes during FY 2023.

The transport and power sectors are major petroleum consumers, accounting for 77.3 percent and 10.7 percent of total demand, respectively.

Overall, the total demand for petroleum products decreased by 7.23 percent during July-March FY 2024 compared to the same period last year. Pakistan is a net importer of petroleum products and crude oil.

The major imported products are Motor Spirit (MS), High-Speed Diesel (HSD), and crude oil, with import quantities of 3,528.1 thousand tonnes, 1,233.5 thousand tonnes, and 6,169.3 thousand tonnes, respectively.

During the period under review, the import value of petroleum products declined by 16.7 percent compared to the same period last fiscal year.

Furthermore, due to the government’s efforts, the country’s reliance on Furnace Oil (FO) for power generation declined, leading to zero imports of FO, which was valued at US$307.7 million in FY 2023.