Pakistan’s Gasoline Imports from China Surge 26.2%

Pakistan’s gasoline imports from China witnessed an increase of 26.2 percent year-over-year (YoY) from 395,000 MT in January-February 2021-22 compared to 313,000 MT the previous year, reported S&P Global Commodity Insights. According to the customs data released on March 21, the energy benchmarks rating agency noted that Pakistan purchased 190,000 MT of gasoline from China in February, indicating a 7.2 percent YoY increase from the corresponding period last year. The increase in imports matched the country’s rising demand despite the push toward cleaner fuels. The CEO of Pakistan State Oil, Syed Muhammad Taha, told S&P that Pakistan’s gasoline consumption growth is likely to edge near double-digits over the next three years due to rising car sales. He said that Pakistan’s vehicle gasoline demand is likely to rise 8 percent to 10 percent each year over the next two to three years as economic activity rises sharply. In March, China’s gasoline outflows are expected to dip to as low as 520,000 MT due to strict export quotas, but gas-oil exports could rise slightly above 500,000 MT as margins improve, according to the S&P Global data. Moreover, gasoline demand is likely to surge in regional economies such as Cambodia and South Korea as the countries relax COVID-19 travel restrictions in response to increased tourism demand. Market experts suggest that the impending Ramazan festivities in April will also support fuel demand. One market source commented that Indonesia will buy 10 million barrels of gasoline in April, while Malaysia will import 1 million barrels.