Pakistan Economic Survey 2022-23: Oil Demand Declined by 21.9%
The total demand for petroleum products has witnessed a massive decline of 21.9 percent during July-March FY 2023, as revealed by the Pakistan Economic Survey 2022-23.
According to the Pakistan Economic Survey 2022-23, the overall demand for petroleum products decreased by 21.9 percent during July-March FY2023 compared to FY2022.
Total Oil Demand
The total demand for petroleum products remained at 23.1 million tonnes during FY2022. However, this year witnessed a decline in demand to 13.1 million tonnes during July-March FY2023 from 16.7 million tonnes in July-March FY2022.
The declining trend may be attributed to a decrease in demand for FO, HSD, MS, and High Octane Blended Components (HOBC), which comprise more than 95 percent of the total demand.
Furthermore, the transport and power sectors are the major consumers of petroleum, accounting for around 90 percent of the total demand.
However, the demand for Jet Fuel (JP-1 and JP-8) has increased by 18 percent this year. Apart from overseas demand, the demand for petroleum products decreased in all sectors, ranging from 5.3 percent to 45.4 percent.
The decrease in MS and HSD demand may be attributed to high prices, while the decline in FO demand is due to a shift in power generation from FO/HSD to RLNG/Coal and other alternative sources.
Pakistan relies on imports of petroleum products and crude oil. The imports of petroleum products during July-March FY2023 amounted to around 6.1 million tonnes, valued at more than US$ 5.7 billion.
The major imported products are MS, HSD, and FO, with import quantities of 3,853.9 thousand tonnes, 1,645.6 thousand tonnes, and 530.6 thousand tonnes, respectively.
The country’s reliance on FO for power generation has declined, resulting in 530.6 thousand tonnes of imports during July-March FY2023 compared to 1,318.2 thousand tonnes for the same period of FY2022, whereas the total imports of FO were 2,258.2 thousand tonnes in FY2022.
The crude oil import requirement for refineries during July-March FY2023 stood at 5,858.4 thousand tonnes, compared to 6,802.3 thousand tonnes during the same period of FY2022. The total import requirement for crude oil was 9,284.6 thousand tonnes for FY2022.
Gas Sector
Indigenous supplies of natural gas contribute about 29.3 percent (FY2021) to the country’s total primary energy supply mix. Pakistan has an extensive gas network comprising over 13,775 Km of transmission pipelines, 157,395 Km of mains, and 41,352 Km of service gas pipelines, serving more than 10.7 million consumers across the country. How to Check SSGC Duplicate Bill
The average natural gas consumption during July-March FY2023 was approximately 3,258 MMCFD, including 631 MMCFD of RLNG.How To Check SNGPL Online Bills 2023
During the same period, the two gas utility companies (SNGPL and SSGCL) laid a 225 Km gas transmission network, 1,170 Km of mains, and 63 Km of service lines, connecting 92 villages/towns
