ISLAMABAD: The country’s consumption of two key petroleum products, Petroleum Motor Gasoline (PMG) or petrol and HSD, has declined by 21 per cent and 44 per cent, respectively due to measures taken by the government to curtail imports and massive increase in their prices by the incumbent government.
Industry sources told Business Recorder that daily consumption of HSD has reduced to 13,000 MT per day from 23000 MT whereas consumption of petrol has declined to 19,000 MT per day from 24,000 MT.
“If the current pattern of consumption continues during the remaining days of current month, then PMG stock is enough for 32 days and HSD for 62 days,” said industry sources. Presently, the stock of PMG stood at 695,000 MT whereas stock of HSD was 760,000 MT.
On July 21, 2022, addressing a press conference on Minister of State for Petroleum and Natural Resources, Dr. Musadik Malik claimed that the stocks of HSD are enough for 66 days while petrol stock was for 34 days, a claim that was made in spite of the fact that the regulatory requirement of stock is of 20-22 days.
He maintained that sale of PMG was 818,000 MT in July 2021 which has reduced to 580,000 MT in July 2022, which is approximately 30 per cent whereas sale of HSD has slashed by 45-50 per cent from 730,000 MT in July 2021 which is now about 400,000 MT. “The government has managed things in a way that import bill is reduced without effecting the stocks of petroleum products,” he added. POL import was $ 1.4 billion in June 2022, which was significantly less than the pattern set in the previous four or five months.
In June 2021, petrol sale was recorded at 778,000 MT which reduced to 704,000 MT in June 2022, showing a substantial reduction. Likewise, HSD sale was 789,000 MT in June 2021 which has declined to 712,000 MT in June 2022. The country’s import bill has reduced substantially due to reduction in consumption of petrol and diesel.
When contacted, OGRA spokesperson confirmed that the sale and stock figures shared by the Minister of State for Petroleum and Natural Resources were accurate.—MUSHTAQ GHUMMAN
