ISLAMABAD: Pakistan surpassed Singapore to emerge as the top destination for Chinese petroleum outflows in the month of September, US-based financial information and analytics firm S&P Global reported on Thursday. 

China’s total oil exports to Pakistan rose to 242,000 metric ton (mt), surging 227.5 percent from August and 126 percent on the year, the report said, citing data released by China’s General Administration of Customs from Wednesday. 

Thanks to the increase in September, it said, China’s total exports to Pakistan stood at 926,000mt over the first nine months of the year, soaring 765.8 percent on the year, the sharpest jump among all the top 10 destinations. 

Pakistan’s oil products consumption rose 24 percent on the year to 5.863 million mt from July to September due to a rebound in industrial and transportation activity and an increase in demand for fuel oil, following a rise in LNG prices. 

The country’s demand for oil is poised for robust growth as a central bank stimulus package and healthy farm sector growth underpin a broader economic recovery and boost vehicle sales, according to analysts. 

“We are eyeing growth of 4 percent-5 percent in diesel sales and 12 percent-15 percent in petrol sales this year, given the recovery in economic activity,” Atif Zafar, chief economist and director research at Karachi-based brokerage house Topline Securities, told S&P Global. 

“The higher liquidity has resulted in an increase in car sales, which in turn will also result in higher petrol sales.” 

Meanwhile, China’s September outflows to Singapore jumped 495.8 percent on the month to 209,000mt, but still down 60.7 percent on the year. Despite a year-on-year decline, Singapore still took about 39.5 percent of China’s total gasoline outflows from January to September, compared with 52 percent during the same period last year. 

China’s gasoline exports for September have recovered from a 30-month low of 568,406mt in August to 920,000mt in September, up 61.9 percent on the month, according to the report. 

The outlook for petrol demand remains bullish in Asia and the Middle East, as economic activity started to pick up in September, with movement of cargoes noted toward end-users in Pakistan. 

Exports to Indonesia also increased sharply by about 140.9 percent year-on-year to 838,000mt, according to the report.