ISLAMABAD: The imports of the petroleum group witnessed a significant decline of 17.96 per cent during the July-April period of FY23 compared to the previous year, Pakistan Bureau of Statistics data showed on Monday.

This drop can be attributed to a sharp reduction in consumption, which was a direct result of a slowing economy amidst unprecedented inflationary pressures. The country also witnessed the highest-ever increase in fuel prices.

Moreover, both local production and the export of petroleum products from the country suffered negative growth, exacerbating the overall situation.

In terms of absolute figures, the total import value of the petroleum group contracted to $13.97 billion in the first 10 months of FY23, down from $17.03bn in the corresponding period of the previous year.

Data compiled by the PBS showed the imports of petroleum products declined by 28.07pc in value during 10MFY23 and 38.18pc in quantity. Import of crude oil decreased by 14.88pc in quantity while the value decreased by 1.98pc.

Similarly, liquefied natural gas (LNG) imports fell by 16.06pc during July-April FY23 on a year-on-year basis. This would have translated into relatively lower LNG-based power generation — a replacement for furnace oil. On the other hand, liquefied petroleum gas (LPG) imports jumped 3.53pc during the months under review due to domestic shortages.

In April, total oil imports declined by 59.91pc to $891.46 million, from $2.22bn in the same month last year.

Published in Dawn, May 23rd, 2023