Pakistan's oil demand recovery mixed as government hikes pump prices

Quantum Commodity Intelligence - Demand for gasoline in Pakistan recovered to pre-pandemic levels over the 11 months to May, but diesel consumption lagged behind the two-year comparison and remained sharply lower than the peak three years ago, data from the Pakistan government showed Thursday.

The government increased prices of gasoline, diesel and jet fuel on Thursday, July 1, amid talks with the International Monetary Authority regarding improving revenues, according to various media reports.

Motor spirit, or gasoline, demand was impacted very little by the Covid pandemic and has been rising steadily in the country for several years.

Gasoline demand reached 7.57 million mt between July 2020 and May 2021, around 118,000 mt up year-on-year, and just 27,000 mt shy of levels between July 2018 and May 2019, when it peaked.

Demand for diesel topped 7 million mt over the 11 month period, up 377,000 mt year-on-year, but still down 349,000 mt from two years earlier.

Fuel oil demand bounced back to around 2.9 million mt, up 520,000 mt from the 11 months between July 2019 and May 2020, but was down almost 650,000 mt from the same period two years ago.

Pakistan's fuel oil demand dropped sharply four years ago as the country switched more power generation to LNG.

In the 2015 to 2016 period, fuel oil demand was over 9.5 million mt a year.

Consumption of jet fuel (JP-1) continued to fall, dropping to 334,000 mt over the 11 months between July 2020 and May 2021, down 216,000 mt from a year earlier, and down 457,000 mt from two years earlier.