KARACHI: The sales of petroleum products have climbed up by 44 percent year on year (YoY) in March 2021 due to low base of March 2020 as the government last year enforced lockdown that resulted in slowdown in sales volume.
Analysts at Arif Habib Limited said that total petroleum and lubricant sales clocked-in at 1.49 million tons in March 2021, depicting a gigantic growth of 44 percent YoY (ex- furnace oil growth of 32 percent YoY and 4 percent MoM) and 6 percent MoM due to extra working days compared to February and low base of March 2020 given the incumbent government enforced a lockdown last year resulting in a slowdown in sales volumes.
The growth in sales volumes is primarily attributable to: i) Economic growth driving retail fuel sales, ii) Surge in trade activity (exports and imports) and better agricultural yields resulting in higher sales of HSD, iii) double digit growth in automobile offtake, iv) preference to private transport over public transport to reduce chances of contracting Covid-19, and v) strict surveillance on borders and various parts of country in order to control supply of illegal or dumped fuel from Iran.
During 9MFY21, sales of total petroleum products increased by 15 percent YoY to 14.15 million tons against 12.27 million tons in 9MFY20.
Dissection of data revealed that major contribution to growth came from HSD and FO with offtake undergoing a jump to 5.38 million tons and 2.30 million tons, up by 17 percent and 43 percent YoY against 4.60 million tons and 1.61 million tons in SPLY.