Crude oil production in Pakistan decreased from 94,500 barrels per day in 2015 to 70,500 barrels per day in 2024, according to the Pakistan Petroleum Information Service (PPIS).

Gas production also saw a significant decline, dropping by 900 million cubic feet per day (MMCFD) over the same period.

In 2015, Pakistan’s daily gas production stood at 4,016 MMCFD, but by 2024, it had decreased to 3,116 MMCFD, reflecting an annual decline of 4.4%. Meanwhile, oil production saw a slight annual increase of 1.5% in the 2024 fiscal year, reaching 70,536 barrels per day.

Despite the demand for petroleum oil products hitting an 18-year low at 15.3 million tonnes in the fiscal year 2023-24, which ended on June 30, the government is estimated to have collected an outstanding Rs1 trillion in petroleum development levy (PDL) from the sale of oil products over the year.

The collection of PDL at Rs60 per litre on the sale of petrol and diesel, coupled with the full pass-through of increased global energy prices to local consumers, remained the single largest reason behind the historic plunge in demand.

Additionally, the overall economic slowdown, sluggish industrial output, high inflation, and elevated interest rates discouraged industrial and commercial consumers, while households reduced their demand for commuting.

In the last month of FY24, however, the demand for petroleum products revived, hitting a 19-month high at 1.45 million tonnes.

This was due to a notable cut in energy prices and the increased use of expensive furnace oil-run power plants to meet the surge in electricity demand during the scorching summer season.