Furnace Oil ("FO") is a major source of fuel for power and industrial sectors with power
sector accounting for 72% of total consumption in FY 05.
Cement (5%) and other industries (23%) account for the remaining 28%. FO is a deficit product and about 31% of domestic consumption was met through imports during FY 05.
FO was deregulated in July 2000 leading to stiff competition amount MOCs and oil traders
actively engaged in the marketing and import of FO.
FO sales experienced a decline of 15% in FY 03 and further 44% in FY 04 mainly due to
increase in availability of gas and water for the power sector and conversion of cement
plants to coal and gas fired systems.
FO sales bounced back in FY 05 with a growth rate of 23% due to shortage of water and
disruption of gas supplies.
FO DEMAND & SUPPLY (000 TONS)
3723
3051
8000
7750
4592
3059
7000
6663
3069
6000
5000
3143
4000
3000
2000
1000
0
FY 02
FY 03
FY 04
FY 05
Demand
Production
Sectoral Consumption of FO (000 Tons)
1230
2493
1544
6113
1272
3319
7000
1265
5398
6000
5000
4000
3000
2000
1000
0
FY 02
FY 03
FY 04
FY 05
Others
Power Sector
HIGH SPEED DIESEL:
High Speed Diesel ( "HSD") in terms of volume, is the most consumed POL product in Pakistan. HSD is a deficit product and about 55% of domestic consumption was met through imports during
FY 05.
Transport & agriculture sectors are the main consumers accounting for 90% of total
consumption.
The demand of HSD grew at a CAGR of 3.6% during FY 05
During the last two years the growth in HSD consumption has been contributed primarily by a
significant increase in freight movement and growth in agriculture sector
HSD is a partially deregulated product; OMCs are authorized to fix and notify HSD prices
individually on cost competition basis and as per parameters set by GOP but OMC margin is
capped at 3.5% and dealer margin at 4%
HSD Demand & Supply (000 Tons)
7334
3050
8000
6964
2517
7734
3454
7000
7014
2721
6000
5000
4000
3000
2000
1000
0
FY 02
FY 03
FY 04
FY 05
Demand
Production
Sectoral Consumption of HSD (000 Tons)
6614
747
8000
6414
550
7013
724
7000
6418
596
6000
5000
4000
3000
2000
1000
0
FY 02
FY 03
FY 04
FY 05
Transport & Agriculture
Others
MOTOR GASOLINE:
Pakistan has been able to meet local requirement of Motor Gasoline ("Mogas") through local
production since PARCO came online in 2001
Local refineries produced 1.33 million tons of Mogas during FY 05
Transport sector is the main consumer accounting for 98% of total consumption
The demand for Mogas grew at a CAGR of 6.8% during FY 02-FY 05
Mogas consumption increased to 1,332 tons in FY 05 from 1,265 tons in FY 04 due to the
growth in the number of cars and motorcycles. However, there has been a decline in Mogas
consumption of 11% during 1H FY 06 when compared to same period last year due to
availability of cheaper fuels such as CNG and continuous increase in oil prices
Mogas is a regulated product and OMC margin is fixed at 3.5% and dealer margin at 4%
Mogas Demand & Supply (000 Tons)
1268
1263
1500
1095
1116
1332
1323
1104
1062
1000
500
0
FY 02
FY 03
FY 04
FY 05
Demand
Production
Sectoral Consumption of Mogas (000 Tons)
1268
31
1500
1102
19
1332
42
1104
38
1000
500
0
FY 02
FY 03
FY 04
FY 05
Transport & Agriculture
Others
LIQUEFIED PETROLEUM GAS:
Mainly used by domestic and commercial consumers
Consumption in the country has increased by a CAGR of 10.3% over the last 6 years due to
increasing prices of kerosene and other alternatives
