KARACHI: The sales of petroleum products have sharply increased by 26 percent in February 2021 as compared with same month of the last year owing to higher economic activities after reduction in coronavirus cases.
The sales of Oil Marketing Companies (OMCs) were recorded at 1.4 million tons in February 2021 as compared with 1.11 million tons in the same month of the last year.
Analysts at Arif Habib Limited attributed the growth to resilience displayed by the economy and the ensuing demand for motor spirit.
Further, the growth may be attributed to better agricultural yields resulting in higher sales of high speed diesel (HSD). Besides, cheaper motor spirit and HSD prices compared to same period last year.
The massive growth in two/three/four-wheeler off-take and absence of CNG at fuel stations increasing the demand of motor spirit were also major reasons for sales of petroleum products.
The analysts said that strict control on borders to control supply of illegal or dumped fuel from Iran also contributed to higher sales.
The sales of petroleum products also exhibited 13 percent increase to 12.67 million tons during first eight months (July – February) 2020/2021 as compared with 11.24 million tons during the same period of the last fiscal year.
Dissection of data revealed that major contribution to growth came from HSD and furnace oil as their off take jumped to 4.84 million tons and 2.09 million tons, up by 15 percent and 36 percent YoY against 4.21 million tons and 1.54 million tons in same period of the last year.