·         Past four months have seen the demand for refined petroleum products drop by 21.6% majorly due to higher pump prices, impact due to floods and an overall economic slowdown.

·         A 29.5% decline in POL product imports was witnessed as well in the first four months (Jul-Oct), compared to SPLY, as quantity imported stood at 6.06mn tons during the period vs. 8.6mn tons during 4MFY22

·         The drop in global POL consumption is being largely offset by increased utilization in industries and power plants as a substitute for natural gas, which still remains at its multi-year highs (US$26.4/mmbtu, up ~400% vs. 3-yr avg.)

·         Locally, the situation could’ve been dire as well if not for Nuclear and Hydel generation making a comeback in the power mix during the last 4 months (avg. share in mix 4MFY23: 34%/16.5% vs. 18%/13.5% in Jan-June’22 avg. for Hydel/Nuclear).

Courtesy- AKD Research