Petroleum products’ consumption grows by 9.7%

The consumption of petroleum products registered a growth rate of 9.7 percent during fiscal year 2016-17 as compared to previous year’s increase of 5.2 percent.

During the year, main drivers of increased consumption were transport and power sectors, which registered high growth of 12 percent and 10 percent respectively as compared to the year 2015-16, Oil and Gas Regulatory Authority (OGRA) said in its annual report for the year 2016-17. 

The consumption of Motor Spirit (MS) in transport sector witnessed an increase of around 16 percent during the period under review, which could be attributed to rising demand of transport sector particularly the growing number of motorcycles and cars.

Similarly, consumption of High Speed Diesel (HSD) grew by 10 percent compared to previous year mainly on account of higher utilization by transport sector indicating increased economic activity in the country.

Transport and Power sectors consumed almost 90 percent of total Petroleum Oil Lubricant (POL) consumed in the country, with 57 percent and 33 percent shares respectively. 

Pakistan State Oil remained the lead player in total energy products supply to the consumers with 55 percent market share, followed by Shell with 9 percent, Attock Petroleum Limited and Hascol Private Limited with 8 percent each. Total PARCO Marketing Limited and Total PARCO Pakistan Limited captured 4 percent shares each. While, Byco Petroleum Pakistan Limited and other oil marketing companies contributed 3 percent and 8 percent shares respectively.

Total production by the refineries stood at 11.67 million tons as compared to previous year’s 11.31 million tons, showing a growth of 3.2 percent.

Pak-Arab Refinery Company was the largest and main producer of petroleum (POL) products with 39 percent market share in the total production, followed by National Refinery Limited with 20 percent share, Attock Refinery Limited, Pakistan Refinery Limited and Byco Petroleum Pakistan Limited with 18 percent, 14 percent and 10 percent respectively.

The demand for HSD, MS and FO were mostly met through imports as domestic production was not enough to meet the domestic requirements.

Around 73 percent of MS, 69 percent of FO, 46 percent of HSD and 14 percent of Jet Fuels demand was met through imports of finished POL products in the country during the last fiscal year.