Petroleum imports fall amid slowing economy

Imports of the petroleum group dipped nearly 25.94 per cent year-on-year in October owing to the sharp reduction in demand as a result of the slowing down of the economy coupled with the highest-ever inflation. The highest-ever increase in prices also contributed to lower consumption of petroleum products. Data compiled by the Pakistan Bureau of Statistics (PBS) showed the imports of petroleum products declined by 36.67pc in value during October and 46.86pc in quantity. Import of crude oil decreased 22.92pc in quantity while the value increased 1.93pc. Similarly, Liquefied Natural Gas (LNG) imports fell by 37.54pc during October on a year-on-year basis. This would have translated into relatively lower power production through LNG — a replacement for furnace oil. On the other hand, liquefied petroleum gas (LPG) imports jumped 42.13pc. Between July-October FY23, total oil imports fell 2.31pc to $6.05 billion during 4MFY23, from $6.19bn in the same period last year.