The Oil and Gas Regulatory Authority (OGRA) has approved the import of 128,000 tons of high-speed diesel (HSD) in January 2024, after demand fell mainly due to the end of the harvest season.
Ogra has allowed import of 90,000 tons by Pakistan State Oil (PSO) and 38,000 tons by Gas and Oil Marketing Company (GO) for this month. The decision, made during the recent Product Review Meeting (PRM), was based on January supply and demand forecasts.
The product review meeting expected demand for HSD to fall to 580,000 tons in January, compared to 800,000 tons in November. The reduction in import requirements also received support from local refineries, which did not oppose the approval of imports during the meeting, according to oil sector officials.
During the first five months of FY25, Pakistan imported 800,000 tons of HSD, with November witnessing the highest monthly imports of 332,000 tons due to harvest-related demand.
Earlier in the fiscal year, imports declined, reaching 98,000 tons in July, 147,000 tons in August, 131,000 tons in September, and 90,000 tons in October.
HSD consumption for the fiscal year ending June 30, 2024 amounted to eight million tons. Petroleum product sales during the first five months of FY25 rose 5% year-on-year to 6.75 million tonnes, compared to 6.45 million tonnes in the same period last year.
On the product side, motor spirit (MS) and HSD sales increased, while furnace oil (FO) volumes decreased. Total MS sales reached 3.18 million tons, HSD sales reached 2.89 million tons, and FO sales reached 0.31 million tons. In November, gasoline sales rose 17% year-on-year to 0.67 million tons, while HSD sales grew 21% year-on-year to 0.79 million tons.
For December, Ogra approved the import of 200,000 tons of HSD by PSO and GO to meet market requirements.