Petrol and Diesel imports shoot up on higher economic activity under CPEC

The petrol, high speed diesel and furnace oil imports in the country during the first nine months of the fiscal year recorded tremendous growth owing to higher economic activity under China Economic Corridor and lower petroleum product prices.

The data received from the Oil Companies Advisory Council revealed that motor gasoline imports in the country recorded a growth of 18 percent to 3.603 million metric tons during July 2016 to March 2017 period as compared with 3.056 million metric tons. Similarly the imports of high speed diesel and furnace oil showed an increase of 36 percent and 25 percent to 2.732 million metric tons and 4.432 million metric tons respectively.
According to an analyst the petrol and high speed diesel sales recorded growth on lower petroleum product prices during the period under review compared to same period last year.  During the nine months most of the period the petroleum product prices remained unchanged. For the last three months or so the price registered increase owing to raise in world crude oil prices
Moreover furnace oil shipments rose mainly on back of the government policy to reduce volume of load shedding in the country and due to winter season hydel production receded sharply. During winter season, due to low water inflows, electricity from hydel production plunges to almost 1000 MW compared to its peak of 6000 MW, when country’s water reservoir are receiving full flow of waters through melting snow and rains.
Analyst predict sales and imports are due to rise on higher economic activity as most of the international financial institutions like Asian Development Bank, International Monetary Fund and World Bank and even State Bank of Pakistan forecast economy to grow by 5 to 6 percent in the current fiscal year, an improvement from 4.7 percent recorded in 2015-16.