The local petroleum production in the country has dropped by 8.35% in the fiscal year 2018-19, according to the stats of Pakistan Bureau of Statistics.
The inflation rate in the country has forced everything in a downward direction, and the production of petroleum commodities is no exception. Ever since the US dollar has jumped to a record mark of Rs.160, the automobile industry, like every other industry, has been under a massive breakdown. The prices of automobiles have increased by almost 30% on the back of nearly 26% appreciation of the US dollar against the rupee in the last 12 months or so. Unsurprisingly, 2018 is regarded as the declining year for the auto sector of Pakistan as it continues to follow the trend of low sales volumes. The petroleum prices have also recently hit their record high and consequently; the production has dipped in FY 2018-19.
During the period under review, jet fuel has undergone a significant drop of 9.54%. Pakistan Bureau of Statistics revealed stats which indicate that the major petroleum commodities including high-speed diesel, kerosene oil, furnace oil, jute batching oil and solvent Naphtha suffered a decline of 9.84%, 1.14%, 11.92%, 14.48%, and 26.9% respectively. However, the production of some of the petroleum products was increased, which includes a 3.22% and 9.78% rise in the motor spirit oil and lubricating oil respectively. On the other hand, diesel oil and liquefied petroleum gas (LPG) went up by a considerable 16.65% and 17.23% respectively.
Even if we look at the yearly comparison of petroleum products produced during June in 2018 as compared to 2019, there is a substantial decrease of 21.74%. During this period, the production of jet fuel oil and kerosene oil went down by 5.4% and 2.93% respectively. Moreover, the other significant commodities, including motor spirit, dropped by 23.3%, high-speed diesel by 29.12% and diesel oil by 33.28% during the period under review. Liquefied petroleum gas (LPG) was also produced 6.21% less than its corresponding month in the last year. The production of furnace oil, lubricating oil, jute batching oil and solvent Naphtha also declined by 10.96%, 15.24%, 74.19%, and 11.31% respectively.
The overall face of the auto industry is in a state of downfall at the moment owing to the economic slowdown process in the country. It will be interesting to see how the government counters the current situation where industries and auto manufacturers are partially or completely shutting down its operations. The petroleum prices have also hit the new records in the history of Pakistan. Drop your thoughts in the comments space below and stay connected with PakWheels for the latest updates on the automobile industry.