Pakistan did not import high-speed diesel (HSD) in July, the first month of the current financial year, as local refineries produced enough fuel to meet domestic demand while high import premiums discouraged purchases from the Middle East.
Pakistan imported 1.35 million tonnes of HSD during the previous financial year, with imports continuing throughout the year. However, oil sector data showed no HSD imports in July, while crude oil imports stood at 890,000 tonnes.
According to reports, local refineries produced more than 500,000 tonnes of HSD during July, enough to meet domestic requirements. A senior refinery executive said there was no need for imports because local refineries were able to produce the required quantity of diesel.
High import premiums also discouraged purchases, particularly as HSD is mainly sourced from the Middle East. Kuwait Petroleum Corporation is the main supplier to Pakistan State Oil under a long term agreement.
HSD sales, which were relatively low in June, increased sharply in July. Sales rose 19 percent year over year and 25 percent month over month during the month, with the additional demand met through local refinery production.
However, oil sector sources said a Pakistan State Oil vessel carrying imported HSD is expected to berth in the coming days. Pakistan also imported 345,361 tonnes of petrol in July, all of which was 92 RON petrol, with no 95 RON or 97 RON imports recorded.
Meanwhile, furnace oil exports remained subdued during the first month of the financial year. Pakistan exported 29,853 tonnes of high sulfur furnace oil, 8,354 tonnes of medium sulfur furnace oil and 26,411 tonnes of low sulfur furnace oil during July.
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