Petroleum products consumption registers 23.3 percent decline

The Economic Survey issued by Finance Minister Shaukat Aziz here on Friday conceded that consumption of petroleum products has registered decline of 23.3 percent, whereas other sources of energy showed increase during 2002-03.
The increase has been recorded mainly in natural gas, hydel power and coal at the rates of 1.4, 0.8 and 0.3 million tonnes, respectively. However, the supply of oil decreased by 0.4 million tonnes of oil equivalent in 2002-03 due to a decline in the import of furnace and high-speed diesel oil.
The survey said cement industry has started using coal, both local, as well as, imported to replace natural gas and furnace oil and there is a strong need to create an environment for the improvement of energy sector in the country for competition, so that energy could be made accessible, affordable, and reliable to the people.
It said that energy is the most important input for economic development and prosperity. It talked about all types of energies and their importance. Data shows adequate mineral potential in Pakistan for the conversion of some of the identified mineral deposits into resources.
This provides an impetus to utilise these endowments for revival of economy and socio-economic uplift, especially in the far-flung rural areas of the country.
It added that the government is providing an investment-friendly environment for the energy sector to attract local and foreign investors and following these financial and structural reforms, the energy sector had already emerged as one of the most attractive sectors in the country.
The Economic Survey said average consumption of the petroleum products showed an upward trend, showing an increase of 4.1 percent per annum. The consumption of gas was up by 3.7 percent per annum, electricity by 4.8 percent and coal by 2.2 percent.
The consumption of gas, electricity and coal during the first nine months (July-March) of the current fiscal year increased by 14.9 percent, 8.6 percent and 15.6 percent, respectively over the corresponding period of the last year.
The acceleration in growth of energy consumption during 2003-04 is not surprising when seen against 17 percent increase in large-scale manufacturing and 6.4 percent growth in real GDP. Higher consumption of energy simply reflected the rising level of economic activity in the country.