Pakistan’s Feb lube demand improves

Pakistan’s lubricating oil consumption rose in February amid a pick-up in demand for transport lubricants.

Total lube demand of 12,320t in February rose by 23pc from 10,050t the previous month, according to Oil Companies Advisory Council (OCAC).

Demand typically rises in February from the previous month. The size of this year’s increase was larger than usual.

Lube demand fell by 4pc in February from year-earlier levels. But the pace of the contraction slowed from a 21pc drop the previous month.

The improvement in lube consumption has coincided with signs of firmer economic activity.

The country’s industrial production rose at the start of the year at its fastest pace in five months. Automobile sales, excluding two and three-wheelers, rose in February for a 19^th straight month.

Pakistan’s economy is forecast to grow by about 4.8pc this year, versus a 5.6pc growth rate in 2021.

Consumption of transport lubricants came to 8,460t in February. The volume was up 23pc from the previous month and only 2pc lower than year-earlier levels.

Demand for industrial lubricants rose by 24pc from January to 3,510t.

The country’s base oils and lube production of 14,590t in February exceeded total lube sales by more than 2,200t.