June 7, 2003	Saturday	Rabi-us-Sani 6, 1424

KARACHI, June 6: The consumption of petroleum, oil and lubricants (POL) has registered a growth of 2.1 per cent in white oil products (petrol, diesel, HOBC and JP-1) during July-May 2002-2003 as compared to same period of 2001-2002, thus depicting slight improvement in country’s economic activities.

White oil consumption during July-May 2002-2003 stood at 8,284,000 metric tons as compared to 8,118,000 metric tons in the corresponding period of last fiscal, industry sources said.

However, consumption of black oil declined by 12.6 per cent to 6,267,000 tons from 7,173,000 tons in July-May 2001-2002 owing to conversion to gas.

The fluctuations in white and black oil consummations made a slight negative impact on overall industrial POL consumption which plunged by 4.8 per cent during July-May 2002-2003 to 14.543 million tons as compared to 15.286 million owing to decline in consumption of black oil (fuel oil and light diesel oil).

Oil analysts said that overall consumption of POL products would have gone higher in July-May 2002-2003 if black oil consumption would not have declined by 12.6 per cent.

Fluctuations in overall POL consumption are considered as barometer of country’s economic growth. Analysts said that increase in consumption of white oil products reflects that the general economic conditions relating to large scale manufacturing and industrial sector have been showing positive trends.

May witnessed a phenomenal growth when all major white oil products grew at an unprecedented rate. Mogas consumption posted a growth of 16.6 per cent to 110,000 tons as compared to 94,000 tons while high speed diesel, a major product used by transport and agriculture sector, also showed double digit growth of 13.5 per cent to 791,000 tons from 697,000 tons in May 2002. However, fuel oil demand shrank by over 40 per cent in May 2003 to 742,000 tons as against 434,000 tons due to increased availability of gas to power generation units.

Pakistan’s general economic conditions during July-May 2002- 2003 showed sound and positive trends despite global upheavals owing to Iraq war and threat of Sars in major developing economies.

The overall POL consumption in 2001-2002 was 17.9 million tons. Oil analysts are expecting that the consumption is expected to remain the same keeping in view fluctuations in white and black oil consummations.