Overview
Pakistan petroleum industry felling down in crisis. Along with the automotive industry oil industry is also disturb with huge loss in sales. Economic frustration affects the overall business industry. Due to import restrictions and unfavorable economic taxes on imported products disturb the smooth production of vehicles. Pakistan’s oil industry is dependent on imports. The devaluation of the rupee has been affected on imported products and this is a major cause of high fuel prices in Pakistan. The record high petrol prices are not bearable for the citizens which cause of low its sales.
Petroleum Sale Down
As per the recent report, the current decline in oil sales reaches 26%. Furnace top down with the highest percentage 49. Whilst, high-speed diesel is on second number with a decline of 28% and gasoline at the with 17% respectively.
The Fiscal year 2023 is labeled as the record highest lowest sale for petroleum products and the oil industry has seen it for the first time in history. Previously, the oil industry faced an unparalleled decline during COVID due to the lockdown of the country. And the other bad time was FY2007 when it clocked at just 16.6 million tonnes.
On a year-on-year basis, Pakistan petroleum sales fell down by 26%. Without any doubt, it is because of the economic meltdown and the huge increase in petrol prices.
As per month-on-month basis, the sale increased by 4% in June 2023 compared to May 2023. It is most probably due to the summer because engines consume more fuel in summer.
Conclusion
The oil industry is suffering in loss same as the automotive industry. The difference is automotive industry suffers in loss due to unfavorable economic affairs. Car taxes increased, custom duty is also increased and the remaining concerns fulfill the issue in LCs approval. The shortage of raw materials creates hurdles in production and causes a delay in deliveries. meanwhile, the petroleum industry’s low sale is also linked to the dwindling economic situation. Both need government support and economic stability to grow.
