Domestic oil sales plunge by 28.45pc in seven months

KARACHI: The domestic oil sales have dropped by 28.45 percent to 10.74 million tons during July – January 2018/2019 as compared with 15.01 million tons in the same period of the last fiscal year.

According to sales volumes of Oil Marketing Companies (OMCs) the sale of motor spirit (petrol) dropped by one percent to 4.27 million tons during first seven months of current fiscal year as compared with 4.32 percent in the same period of the last fiscal year.

The sales of high speed diesel (HSD) fell by 21 percent to 4.26 million tons during July – January 2018/2019 as against 5.40 million tons in the same period of the last fiscal year.

The sales of furnace oil dropped sharply by 61 percent to 1.81 million tons during the first seven months of the current fiscal year as compared with 4.67 million tons in the same period of the last fiscal year.

Analysts at Arif Habib Limited, said that as per the latest petroleum sales data for the month of January 2019, total White and Black Oil sales clocked-in at 1.57 million tons, depicting a decline of 13 percent YoY while up by 9 percent MoM.

In retail fuel segment, MoGas sales showed growth of 3 percent YoY and 1 percent MoM to 0.61 million tons on account of continuous increase in sales of Motor cars and Motor bikes keeping the volumes upbeat.

On the other hand, High Speed Diesel (HSD) sales plunged by 24 percent YoY and 4 percent MoM due to various factors including i) large scale manufacturing depicted negative growth in manufacturing sector, ii) surge in quantum of smuggled fuel from Iran, iii) shift in reliance of electricity generation to the national grid as opposed to diesel based generation, and iv) higher HSD price (up by 19 percent) compared to same period last year.

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