Islamabad-The consumption of petroleum products in the country declined by 20.62 per cent to 19.56 million tonnes during 2018-19 as compared to previous year’s 24.64 million tonnes. 

The contraction in consumption was observed in all main sectors including power, which suffered huge decline of 56.72 per cent to 2.76 million tonnes during FY 2018-19 as compared to 6.37 million tonnes in FY 2017-18, followed by industrial sector, which observed lower consumption by 30.16 per cent and transport sector showed a fall of 6.01 per cent, said Ogra’s State of the Regulated Petroleum Industry Report 2018-19.

The product-wise consumption of Petroleum Oil Lubricant (POL) products shows that Furnace Oil (FO) consumption decreased by 52.54 per cent, High Speed Diesel (HSD) by 13.64 per cent, Aviation Fuel by 12.25 per cent and Kerosene Oil by 10.10 per cent in FY 2018-19 as compared to last year. The decline in consumption of FO is mainly owing to lower intake by power sector for power generation and less HSD consumption due to sluggish economic activities in the country. Whereas the consumption of Light Diesel Oil (LDO) increased by 19.98 per cent and Motor Spirit (MS) by 2.33 per cent during this period.

Similarly the report said that Refineries’ total production declined by 9.20 per cent to 12.40 million tonnes during FY 2018-19 as compared to 13.64 million tonnes in FY 2017-18. Pak-Arab Refinery Limited (PARCO), National Refinery Limited (NRL), BPPL and Pakistan Refinery Limited (PRL) have shown sharp decline in production as compared to last fiscal year. Comparatively, ARL and ENAR production remained steady.

Regarding natural gas, the report said that there is a significant rise in demand and consumption of gas by residential / domestic consumers owing to price differential vis-a-vis other competing fuels, i.e. LPG, fire wood and coal. The gas utility companies during last five years connected/added around 0.3 million consumers to the gas network annually. The increased demand from sectors, such as power, commercial, residential and fertilizer has resulted in natural gas availability constraint. Total gas consumption during current financial year was 3,969 MMCFD. Total supply of natural gas during the year was 4,319 MMCFD of which gas utility companies supplied 2,379 MMCFD, Independent Systems 1,040 MMCFD and 901 MMCFD of RLNG was imported.

Due to increasing gas demand from various sectors of the economy, particularly power, domestic, fertilizer, captive power and industry, the supplies are not sufficient enough to meet the rising demand. The demand supply gap during FY 2018-19 was 1,440 MMCFD, which is expected to rise to 3,684 MMCFD by FY 2024-25 and 5,389 MMCFD by FY 2029-30. The gas utility companies expanded their transmission and distribution network to cater the demand of its new consumers. SNGPL and SSGCL have extended their transmission network by 81 Km and 24 Km respectively during FY 2018-19. Similarly, SNGPL extended its distribution network by 7,782 Km and SSGCL by 660 Km during current financial year. SNGPL has connected 430,411 new consumers during FY 2018-19 reaching to 6.8 million total consumers on its network. SSGCL has added 106,054 new connections, making a total of 3.0 million consumers on its network. Overall, there were 9.8 million natural gas consumers in the country by the end of FY 2018-19.

Regarding the LPG the report said that the share of LPG in country’s primary energy supplies is about 1.2 per cent. This low share of LPG may be attributed to supply constraints and comparatively higher price of LPG in relation to competing fuels like natural gas and wood etc. The size of LPG market during FY 2018-19 was around 1,061,447 MT/Annum which is 17 per cent lower as compared to last year’s 1,280,550 MT/Annum. Major decline in LPG consumption was observed in industrial sector amounting to 25 per cent, commercial 19 per cent and domestic 10 per cent as compared to last year. The decline in import of LPG from 34 to 24 per cent may be attributed to less consumption of LPG during the period under review. Regarding LNG supply the report said that LNG imports were 901 MMCFD during FY 2018-19 as compared to 754 MMCFD in FY 2017-18. Its share in overall natural gas supplies has increased from 24 per cent last year to 27 per cent in FY 2018-19.