Oil sales fall by 10% on slow economic activity

Oil sales fall by 10% on slow economic activity

KARACHI: The domestic oil sales have declined by 10 percent during first seven months (July – January) 2019/2020 owing to slow economic activity.

Analysts at Topline Securities on Tuesday said that the oil sales slipped to 10,139,000 tons during first seven months of the current fiscal year showing decline of 10 percent.

The oil consumption in January 2020 fell by 13 percent year on year, where drop in sales was largely driven by 40 percent lower furnace oil sales due to government policy of moving away from FO-based power generation and 11 percent yoy decline in high speed diesel volumes amidst slow economic activity, particularly in the agriculture space.

However, on a sequential basis, oil sales witnessed limited decline of 2 percent month on month, supported by 88 percent MoM higher furnace oil offtake given government allowing partial resumption of FO-based power plants to support the local refineries and possible exports by Byco Petroleum.

High Speed Diesel sales were down by 13 percent Month on Month in January 2020, while motor spirit volumes declined by five percent MoM.

Pakistan State Oil sales declined by 16 percent YoY and 10 percent MoM in January 2020, however, during first seven months of current fiscal year sales remain 6 percent YoY higher.

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