Pakistan’s lubricating oil demand fell in December for a sixth month as slowing economic activity slashed lube consumption.The country faces the simultaneous challenges of high inflation, low growth and low foreign exchange reserves. The repercussions have impacted a swathe of industries such as automobile manufacturers.The slowdown in activity, combined with higher prices and restrictions on imports of vehicle parts in turn slashed automobile production and sales.These various factors were likely to keep domestic lube demand under pressure at least during the first few months of this year.Total lube consumption of 10,930t in December fell by 23pc from year-earlier levels, according to Oil Companies Advisory Council (OCAC).The extended contraction cut total lube demand to 147,510t in 2022..The volume fell by 7pc from 158,810t the previous year as a slump in sales in second-half 2022 countered a rise in demand in the first half of the year.Transport lube sales fell by 30pc in December to 6,420t.Industrial lube consumption dipped by 35pc to 3,150t.Industrial lube demand had been firmer than lube demand throughout most of last year.The trend contrasted with many other markets where automobile lube consumption remained relatively firm even as industrial oils demand fell..Japan's Dec lube demand mixed.The fall in lube consumption for a sixth month mirrored a similar drop in Pakistan’s automobile production and sales.Auto sales fell in December for a sixth month and by at least 30pc in each of those months. Tractor sales fell even more steeply, by more than 70pc in November and December.The drop in lube demand contrasted with a rise in the country’s base oils output in December to its highest in at least six years.Output rose even amid signs of steady base oils flows to the country in the fourth quarter of the year from key sources like Singapore and South Korea..Asia’s December base oils exports fall
Pakistan’s lubricating oil demand fell in December for a sixth month as slowing economic activity slashed lube consumption.The country faces the simultaneous challenges of high inflation, low growth and low foreign exchange reserves. The repercussions have impacted a swathe of industries such as automobile manufacturers.The slowdown in activity, combined with higher prices and restrictions on imports of vehicle parts in turn slashed automobile production and sales.These various factors were likely to keep domestic lube demand under pressure at least during the first few months of this year.Total lube consumption of 10,930t in December fell by 23pc from year-earlier levels, according to Oil Companies Advisory Council (OCAC).The extended contraction cut total lube demand to 147,510t in 2022..The volume fell by 7pc from 158,810t the previous year as a slump in sales in second-half 2022 countered a rise in demand in the first half of the year.Transport lube sales fell by 30pc in December to 6,420t.Industrial lube consumption dipped by 35pc to 3,150t.Industrial lube demand had been firmer than lube demand throughout most of last year.The trend contrasted with many other markets where automobile lube consumption remained relatively firm even as industrial oils demand fell..Japan's Dec lube demand mixed.The fall in lube consumption for a sixth month mirrored a similar drop in Pakistan’s automobile production and sales.Auto sales fell in December for a sixth month and by at least 30pc in each of those months. Tractor sales fell even more steeply, by more than 70pc in November and December.The drop in lube demand contrasted with a rise in the country’s base oils output in December to its highest in at least six years.Output rose even amid signs of steady base oils flows to the country in the fourth quarter of the year from key sources like Singapore and South Korea..Asia’s December base oils exports fall
