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NEW DELHI: Pakistan in September recorded its highest monthly import of high-speed diesel since the commencement of the fiscal year. The surge in imports was a result of increased government efforts to combat smuggling, coupled with rising demand from the formal sector, reported The News International.
For the month of September, the country’s high-speed diesel imports amounted to 120,954 tonnes, a notable increase from the 109,745 tonnes imported in August.
Notably, Pakistan did not import any high-speed diesel in July, relying instead on domestic production and smuggled fuel from Iran to fulfil its requirements.
In August and September, the country imported a total of 230,799 tonnes of high-speed diesel.
“The import of HSD remained subsided since the start of the current fiscal year, as smuggled Iranian diesel captured the market by taking away the major share in the domestic market, which kept the sale of HSD by oil marketing companies depressed,” an industry official told the news outlet.
“The diesel demand in the country from the formal sector was so low that the country did not import HSD in July, as the smuggled Iranian diesel as well as the production of HSD in the local refineries catered to the domestic demand of diesel,” the official added.
The surge in imports occurred as the government intensified its efforts against smuggling, and demand from the formal sector, including transport, industry, and agriculture, increased.
Pakistan’s oil sector has grappled with a significant challenge in the form of smuggling, primarily due to the affordability of Iranian diesel, which has claimed a substantial portion of the market share and diminished the sales of local oil marketing companies. Nonetheless, diesel imports experienced growth in September, driven by rising demand, according to the official.
The industry anticipates this trend to persist in the coming days, especially as diesel prices have decreased and border security has been enhanced.
For the month of September, the country’s high-speed diesel imports amounted to 120,954 tonnes, a notable increase from the 109,745 tonnes imported in August.
Notably, Pakistan did not import any high-speed diesel in July, relying instead on domestic production and smuggled fuel from Iran to fulfil its requirements.
In August and September, the country imported a total of 230,799 tonnes of high-speed diesel.
“The import of HSD remained subsided since the start of the current fiscal year, as smuggled Iranian diesel captured the market by taking away the major share in the domestic market, which kept the sale of HSD by oil marketing companies depressed,” an industry official told the news outlet.
“The diesel demand in the country from the formal sector was so low that the country did not import HSD in July, as the smuggled Iranian diesel as well as the production of HSD in the local refineries catered to the domestic demand of diesel,” the official added.
The surge in imports occurred as the government intensified its efforts against smuggling, and demand from the formal sector, including transport, industry, and agriculture, increased.
Pakistan’s oil sector has grappled with a significant challenge in the form of smuggling, primarily due to the affordability of Iranian diesel, which has claimed a substantial portion of the market share and diminished the sales of local oil marketing companies. Nonetheless, diesel imports experienced growth in September, driven by rising demand, according to the official.
The industry anticipates this trend to persist in the coming days, especially as diesel prices have decreased and border security has been enhanced.
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