Oil Consumption 7%Up in 2024-25:Economic Survey  

Staff Report

Islamabad: Pakistan has witnessed an increase in consumption of electricity upto 7 % during the ongoing financial year 2024-25.

According to Economic Survey 2024-25, during July–March FY2025, total sectoral consumption of petroleum products stood at 13.17 million metric tonnes (MMT), registering a year-on-year increase of 7.04 percent compared to 12.30 MMT during the same period of FY2024 (Table 14.7). The data reflects varied consumption trends across different economic sectors, shaped by changes in industrial activity, power generation needs, transportation demand, and operational dynamics in public and overseas segments.

The transport sector, which remains the dominant consumer, recorded a 7.99 percent increase in consumption, rising from 9.76 MMT in July–March FY2024 to 10.54 MMT (80 percent of total demand) in the same period of FY2025. This growth is indicative of increased mobility, recovery in trade and logistics, and higher fuel demand from road transport and commercial vehicles.Maintaining Oil Prices to hit oil industry’s cash flow

In contrast, the industrial sector saw a decline of 7.35 percent, with consumption dropping from 815.32 thousand metric tonnes (MT) to 755.40 thousand MT (7 percent of total demand). This decline may be attributed to lower industrial output in certain energy-intensive sub-sectors or improved fuel switching towards cheaper alternatives such as natural gas and renewables.

A substantial decline of 77.68 percent was recorded in the power sector’s petroleum usage, which fell to just 116.21 thousand MT during July–March FY2025. This significant drop reflects the shift toward hydropower, nuclear, coal (particularly Thar coal), and imported LNG in power generation, reducing reliance on furnace oil-based generation.

The domestic sector saw a moderate increase of 7.34 percent, while the agriculture sector’s consumption slightly declined by 3.35 percent, likely due to improved mechanization and marginally lower seasonal demand. Meanwhile, the government sector posted a modest increase of 3.27 percent in petroleum usage.

Notably, the overseas sector (which includes bunker sales and other exports) experienced a significant surge of 57.18 percent, increasing from 948.03 thousand MT in July–March FY2024 to 1,490.11 thousand MT in the corresponding period of FY2025. This sharp rise is largely driven by enhanced shipping activity and increased refueling demands at Pakistani ports. Product-wise consumption of petroleum products is depicted in Figure 14.4.

During July–March FY2025, Pakistan imported a total of 12.53 MMT of petroleum products, up from 11.14 MMT in the same period of FY2024, representing a 12.5 percent increase in quantity (Table 14.8). However, the total import bill in value terms remained relatively stable, amounting to US$8.40 billion—almost unchanged from US$8.44 billion in July–March FY2024. This reflects a combination of higher import volumes, lower international oil prices, and improved procurement efficiency.

The import of Motor Spirit (MS) increased by 11.3 percent in volume to 3.98 MMT, though the import value declined by 5.1 percent to US$3.04 billion, compared to US$3.20 billion in the corresponding period of last year. This divergence points to a favorable shift in global prices despite rising demand from the transport sector.

A sharp surge was observed in HOBC imports, rising more than eightfold from 17.83 thousand MT to 144.44 thousand MT, with the import value increasing from US$16.25 million to US$108.40 million. This indicates rising demand for premium fuels, possibly due to an expanding high-end vehicle segment.

Imports of High-Speed Diesel (HSD) rose from 1.23 MMT to 1.45 MMT, marking a 17.4 percent increase in volume, although the value marginally declined to US$1.01 billion—again reflecting more favorable pricing in global markets.

Imports of crude oil rose from 6.21 MMT to 6.76 MMT, registering an 8.8 percent increase in volume, while the value remained almost flat at US$4.11 billion, owing to softening crude prices in the global market. The increase in crude imports aligns with higher local refining activity to meet domestic demand through indigenously processed fuels.

A marginal quantity of 100/LL aviation gasoline (0.24 thousand MT) was also imported during July–March FY2025, not recorded in the previous year. Jet fuel (JP-1) imports nearly doubled, rising from 98.24 thousand MT to 195.67 thousand MT, with the import value increasing to US$143.10 million—indicating a strong rebound in international and domestic air travel.