Pakistan did not import high-speed diesel (HSD) in July, the first month of the current fiscal year, as local refineries produced enough fuel to meet domestic demand while high import premiums amid regional trade routes discouraged purchases from the Middle East. Pakistan imported 1.35 million tonnes of HSD during the previous financial year, with imports continuing throughout the fiscal period. However, oil sector data showed no HSD imports in July, while crude oil imports stood at 890,000 tonnes.
Refineries produced more than 500,000 tonnes of HSD during July, which was sufficient to meet local demand, oil sector sources said. There was no need to import HSD as refineries did well to produce the required diesel, a senior refinery executive said, adding that high import premiums also discouraged purchases. HSD is mainly sourced from the Middle East, with Kuwait Petroleum Corporation serving as the main supplier to Pakistan State Oil under a long-term agreement, he added.
Oil sector sources said HSD sales were relatively low in June but increased sharply in July, with the higher demand being met through local refinery production. HSD sales rose 19 per cent year-on-year and 25 per cent month-on-month in July. However, sources said a Pakistan State Oil vessel carrying imported HSD is expected to berth in the coming days.
Pakistan imported 345,361 tonnes of petrol in July. All petrol imports during the month were 92 RON, with no imports of 95 RON or 97 RON recorded. Meanwhile, furnace oil exports remained subdued. Pakistan exported 29,853 tonnes of high-sulphur furnace oil, 8,354 tonnes of medium-sulphur furnace oil and 26,411 tonnes of low-sulphur furnace oil during the first month of the current fiscal year.