ISLAMABAD: Pakistan’s petroleum import bill declined in the first nine months (July-March) of fiscal year 2023-24 due to lower consumption, according to the Pakistan Economic Survey 2023-24 released on Tuesday.
The decline in consumption can be attributed to the decline in economic activity and increase in product prices, according to the survey.
Total imports of petroleum products declined to 11,047 thousand MT at a value of US $ 8.36 billion.
The major imported products are motor spirit (MS), high-speed diesel (HSD) and crude oil. As compare with nine month of last fiscal year 2022-23, MS import bill declined from $3.704 billion to $3.156 billion, HSD from $1.646 billion to $1.050 billion and crude oil from $4.287 billion to $4.051 billion.
The consumption of petroleum products has shown a decline of 7.2 percent (from 13.3 million tonnes to 12.3 million tonnes), during the first nine months (July-March) 2023-24. For instance, the survey pointed out, the transport sector alone has witnessed a decline in consumption of petroleum products from around 10.2 million tonnes to 9.8 million tonnes (a decline of 4.8 percent).
Oil and gas exploration companies showed a mixed trend during the period under review. A two percent decline has been witnessed in gas exploration and 1.5 per cent raise in crude oil production.
The gas production has been declined from 1,190 mmcft in first nine months of previous fiscal to 1166 per mmcft same period current year.
Crude oil production, however, raised by 1.5 percent from 25.5M barrel to 25.7M barrel.
Oil and gas exploration companies have been included in the top five sectors with 13.5 percent at sector-wise market capitalisation at the Pakistan Stock Exchange. The market capitalisation of these companies increased from Rs812.491 billion on June 2023 to Rs1.273 trillion by end March 2024 or 56.7 percent increased.
The maximum gas consumption is from the power sector, domestic, and fertilisers, with 894 MMCFD, 864 MMCFD, and 764 MMCFD, respectively.
Copyright Business Recorder, 2024