Oil sales dip 10pc

KARACHI: Country’s total oil sales in the first seven months of the current fiscal year (7MFY20) plunged by 10 per cent to 10.139 million tonnes, mirroring a slowdown of economic activities.

Furnace oil sales in the last seven months shrank by 32pc to 1.395m tonnes followed by 10pc drop in high speed diesel (HSD) to 3.837m tonnes. Petrol sales in 7MFY20 grew by 3pc to 4.455m tonnes.

In Jan 2020, total oil sales came down to 1.349m tonnes from 1.558m tonnes in the same period a year ago.

Furnace oil (FO) sales in Jan 2020 fell to 212,000 tonnes from 360,000 tonnes in same month a year ago while HSD sales dropped to 478,000 tonnes from 537,000 tonnes in Jan 2019. According to Top Line Securities, furnace oil sales plunged due to government’s policy of moving away from FO-based power generation while HSD sales remained depressed amidst slow economic activities.

According to the brokerage house, Pakistan State Oil’s sales declined by 16pc year-on-year (YoY) and 10pc MoM in Jan 2020. However, during 7MFY20 sales remained 6pc YoY higher.

Attock Petroleum’s sales were down 13pc YoY and 9pc MoM in Jan-2020, while Hascol Petroleum’s (Hascol) volumes were up 17pc YoY and 17pc MoM.

PSO’s market share was estimated to have shrunk by 39pc in Jan-2020 compared to its 7MFY20 average of 45pc.

Fall in diesel sales can be attributed to persistent drop in truck and bus sales.