KARACHI: Sales of petroleum products fell by 14 percent year-on-year in August, mainly due to decline in sales of high-speed diesel (HSD) and fuel oil (FO).
Sales of petroleum products fell to 1.22 million tonnes (Mt) in August from 1.41 million tonnes in August of the previous fiscal year, according to data released on Monday. Month-on-month, there was a 2.0% increase in sales from July to August of this fiscal year.
During the first two months of this financial year, sales of petroleum products saw a significant drop of 12 percent to a total of 2.41 million tonnes compared to 2.76 million tonnes in the same period of the previous fiscal year.
Industry experts attribute this decline to persistent diesel smuggling, which continues despite government measures and pronouncements. The decline in sales of petroleum products has also contributed to the decline in the use of fuel oil for power generation.
The data revealed a 7.0 percent drop in gasoline sales in August compared to the same month last year. In the first two months of this fiscal year, gasoline sales were down 8.0 percent compared to the same period last fiscal year.
HSD sales fell 17 percent in August compared to the same month last year and fell 12 percent during July-August this fiscal compared to the same months of the previous year.
Furnace oil sales fell 45 percent in August compared to the previous fiscal year, with sales plummeting 46 percent in the first two months of this fiscal year. A breakdown of sales of petroleum products by oil marketing companies shows that Pakistan State Oil (PSO) recorded a 27% decline in August and a 23% decline during July-August of this fiscal year compared to the same periods last year.
Attock Petroleum reported a 24 percent decline in August and a 23 percent decline in the first two months of this fiscal year. Shell Pakistan’s sales fell 6.0 percent in August and 7.0 percent in the first two months of this fiscal year. However, Hascol reported an 18% increase in sales in August and a 2.0% increase in the first two months of the year this fiscal year.
