Sales of petroleum products grow by 9 percent in seven months

Sales of petroleum products grow by 9 percent in seven months

KARACHI: The sales of petroleum products have posted a 9 percent growth during the first seven months of the current fiscal year mainly due to increasing economic activities and trade.

The sales of oil market companies (OMCs) increased to 11,269,000 tons during July – January of 2020/2021 as compared with 10,309,000 tons in the corresponding period of the last fiscal year, showing an increase of 9 percent.

Analysts at Taurus Securities attributed the increase in sales of POL products to increasing economic activity and trade compared to last year as well as the government’s efforts at reducing sale of HSD in the black market.

The sale of furnace oil posted a 36 percent growth to 1,915,000 tons during the first seven months of the current fiscal year as compared with 1,413,000 tons in the corresponding period of the last fiscal year.

The analysts attributed the significant increase to the shortage for LNG and demand for furnace oil by the power sector.

The analysts said that on the contrary, POL sales registered a decline of 5 percent Month on Month (MoM). The demand for high speed diesel (HSD) and motor spirit wavered on a MoM basis, down 13 percent and 5 percent, respectively, as economic and construction activity decelerated during winters.

The sales of Pakistan State Oil (PSO) for the month posted a drop of 4 percent wherein Year on Year (YoY) sales increased by 12 percent.

APL’s sales increased 5 percent MoM mainly due to growth in FO sales by 38 percent YoY. 1MFY21 sales declined 2 percent.

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