• Download the Constitution of Pakistan
  • Advertise
WRITE FOR US
Economy.pk
No Result
View All Result
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
  • Videos
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
  • Videos
No Result
View All Result
Economy.pk
No Result
View All Result
Home Business

July Sees Zero Diesel Imports in Pakistan Amidst Surplus Stock and Low Demand

by Irsa
August 21, 2023
in Business
Reading Time: 3 mins read
July Sees Zero Diesel Imports in Pakistan Amidst Surplus Stock and Low Demand
Share on FacebookShare on Twitter

According to industry officials, Pakistan did not import high-speed diesel (HSD) in July due to a drop in domestic demand caused by an economic downturn and smuggling from Iran.

The transportation and agriculture sectors consume over 70% of the country’s diesel.

However, both sectors have been severely impacted by the economic downturn and the high cost of Pakistani diesel in comparison to cheaper Iranian fuel.

During the previous fiscal year’s July, the country imported 162,000 tonnes of HSD.

“The economic slowdown has severely hampered transportation sector operations, while agricultural consumption has also been low,” an industry official stated.

He also stated that daily diesel usage through the legal channel has dropped to 15,000 tonnes from 22,000 tonnes previously.

According to sources, Pakistan State Oil (PSO), the country’s largest oil importer, postponed its planned HSD imports for July since local refineries had sufficient stockpiles to fulfill the low demand.

“If HSD had been imported, refineries would have had to shut down because their diesel production would not have been consumed by the local transportation sector,” according to another source.

According to the source, PSO was unlikely to import HSD in August or September, as demand remained weak and the price differential with Iranian diesel worsened.

According to officials, diesel smuggling from Iran met the majority of the country’s demand for HSD in the month under review, as the high price of Pakistani diesel drove the transport sector to cheaper Iranian fuel.

On August 15, the government raised the price of HSD by 7% to Rs293.40 a litre, but Iranian diesel is supplied in border areas for around Rs200 per litre.

“The consumption of diesel through the legal channel has decreased by one-third,” according to an industry official.

“Refineries are already dealing with non-lifting of furnace oil, and power plants are hesitant to use fuel oil for power generation.”

As a result, boiler oil reserves in the country have accumulated, and refineries have had to export some of the supply to keep operations going.” According to the official, if diesel was imported in July, refineries would have to shut down because their output would not have been absorbed by the local transportation industry.

The swelling stockpiles of furnace oil, which is used by power plants to generate electricity, have also posed issues to Pakistan’s oil sector. Because of the high cost of furnace oil, power plants have been unwilling to use it, prompting refineries to export part of their excess stockpiles.

Officials stated they did not expect any change in diesel usage in the next few days, as the diesel price increase would encourage even more Iranian diesel consumption in the country.

“There is little chance that PSO will import HSD in August or the following month, given the current situation of diesel consumption through the legal channel,” an official stated.

Tags: Amidst Surplus StockDiesel Importslatest
Irsa

Irsa

Related Posts

World Bank report reveals Pakistan's poverty rate inrease to 39.4%

World Bank report reveals Pakistan’s poverty rate inrease to 39.4%

Pakistan is facing a major challenge poverty rates are growing and have reached an all-time high of 39.4%! It was...

Pakistan to discuss long-term Russian oil deal next month

Pakistan to discuss long-term Russian oil deal next month

Pakistan will begin discussions with Russia next month to discuss a long-term agreement for importing Russian crude oil, as the...

Azerbaijan launches direct flight operations to Pakistan

Azerbaijan launches direct flight operations to Pakistan

Azerbaijan's national airline announced today that it will begin direct flights to Pakistan. According to sources, Azerbaijan's national airline, AZAL,...

Gold

Gold Rate In Pakistan Today

Gold Rate In Pakistan Today 23 September 2023 On 23 September 2023, the gold Price for One tola of 24-karat...

Railways to shut down Shalimar Express

Railways to shut down Shalimar Express

Pakistan Railways has decided to shut down Shalimar Express once again due to financial crunch. According to sources, the railway...

COAS Munir meets Saudi counterpart, discusses bilateral security matters

COAS Munir meets Saudi counterpart, discusses bilateral security matters

General Asim Munir, Chief of Army Staff (COAS), met with Saudi Arabia's army chief, General Fayyadh Bin Hamed Al Ruwaili,...

Next Post
Govt notifies special court to hear cases under Official Secrets Act

Govt notifies special court to hear cases under Official Secrets Act

Recent Posts

  • At least 20 injured in Sheikhupura train crash
  • New Zealand expands Green List and these professionals are eligible for fast track residency
  • Ireland Govt announces Paid Postgraduate Scholarships 2024 for international students including Pakistan
  • Gautam Gambhir expects Babar Azam to shine in World Cup
  • IT Ministry Started Preparations For the Launch of 5G Services

Advertisement

Twitter

Economy.pk

Economy.pk is a source of economic, political, business, finance, health and sports updates.

Categories

  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
  • Videos

Privacy & Legal

  • Privacy Policy
  • Cookies

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin
  • About
  • Advertise
  • Contact

© 2023 Economy.pk

No Result
View All Result
  • VIDEOS
  • World
    • Europe
    • Americas
    • Asia
    • Oceania
    • Africa
    • Middle East
  • Finance
  • Politics
  • Business
    • Economy
    • Finance
    • Entrepreneurship
    • Real Estate
  • Technology
    • Cyber Security
    • Mobiles
    • Social Media
  • Education
  • Sports
  • Life & Style
    • Personalities
    • Art
    • Culture
    • History
    • Entertainment
    • Fashion
    • Food
    • Health
      • Environment
      • Fitness
  • Sponsored

© 2023 Economy.pk