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Business Recorder reports:

High speed diesel volumes were on the rise due to increased utilisation in generators due to acute shortage and electricity breakdowns being observed. Along with Mogas and HSD, other white oil products--HOBC & Kerosene--also witnessed higher volume growth of 14.4 percent with 8.05 million tons of volume against 7.03 million tons last year, than black oil (FO & LDO) which posted growth of 5.41 percent with 5.80 million tons in 9MFY08 against 5.50 million tons in the same period last year.

He said that Mogas and HSD were main drivers of overall POL consumption growth during the period (black oil's contribution to the rise became stagnant). It was witnessed from the fact that, in volumetric terms, black oil contributed only 23 percent to the total volume increase during 9MFY08 whereas Mogas's and HSD's proportions to the total volume increase were 19 percent and 58 percent (77 percent combined).

Pakistan is not the only country that is observing such rise. Neighboring country India is also facing the same crisis and rising cost of fuel has already started to affect the country’s economy. The government of these countries should take proper steps to narrow the widening gap between demand and supply or else the energy crisis will hinder their economic growth.

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Business Recorder