Import of petrol to remain low: OCAC

KARACHI: Import of petrol may remain low in November and December owing to a slight decline in its demand.

An official in the Oil Companies Advisory Committee (OCAC) said that only one tanker carrying 30,000 tons petrol arrived in November. Another tanker of 30,000 tons, which was scheduled to arrive at the port in October, was turned back due to some dispute. This oil tanker arrived earlier this month making the total arrivals at 60,000 tons.

Due to back-up of 30,000 tons and in view of holidays in November, there is no plan to import additional petrol, he added.

He, however, said that in December one tanker of 30,000 tons was being initially planned for import due to decline in petrol demand as people, especially in the up-country would restrict their movement due to chilly winter and heavy fog.

Petrol import had hit record in country’s history at 65,819 tons in September 2009 and 64,361 tons in August.

He said that tender for petrol import is issued based on the number of working days, mainly followed by demand and supply situation.

The official said that refineries were producing 115,000 -120,000 tons of petrol every month and the rest of the demand is met through imports.

However, market sources said petrol demand may go up in case people in the up-country shift to petrol if the problem of low gas pressure at CNG stations is not resolved.

The ministry of petroleum and Sui Northern Gas Pipeline Limited (SNGPL) are already discussing the winter load-management programme with CNG stakeholders in view of gas supply position.

OCAC figures show that petrol sale during July-Sept, 2009 was recorded at 469,072 tons as compared to 340,034 tons in the same period of 2008.

Pakistan State Oil and Shell Pakistan are importing petrol in alternative months to meet the rising demand.

Petrol imports from Oct, 2007 to Oct, 2009 stood at 595,655 tons. Rising sale of bikes and 3-wheelers to 225,842 units during July-Oct, 2009 as compared to 169,043 units in the same period of 2008 has played a main role in pushing up demand of petrol.

However, these figures are from selected members of Pakistan Automotive Manufacturers Association (PAMA), while more than 50 assemblers, mainly Chinese, are members of Association of Pakistan Motorcycle Assemblers (APMA). Motorbikes hold 55 per cent share of total petrol sales.