Petroleum sales fall 2% in September

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KARACHI:
The sale of petroleum oil products dropped net 2% to 1.52 million tons in September mainly thanks to subdued activities within the agriculture sector of Pakistan.

The drop by sales would are larger if consumption of furnace oil had not increased within the wake of growing gas crisis, because the government opted to resume production from expensive oil-fired plants to satisfy power demand within the country, experts said.

The overall sale of petroleum oil products stood at 1.55 million tons within the previous month of August, JS Research said citing data from Oil Companies Advisory Committee (OCAC).

“Demand for petroleum products, mainly for diesel, has declined thanks to near completion of harvesting season for summer crops (paddy/rice, sugarcane, maize and cotton) within the country,” Topline Research Deputy Head Shankar Talreja said while lecture The Express Tribune.

The agricultural activities bogged down after rainwater accumulation within the fields and concrete flooding mainly in Sindh, he added. Breakdown suggested the sale of petrol and diesel decreased by 8% each to 0.64 million tons and 0.47 mil- lion tons, respectively, in September compared to 0.70 million tons and 0.51 million tons in August, respectively.

Petroleum sales

Petrol is especially employed by bikers and car commuters. a number of the households also use it for operating home- based power generators. the rationale for drop by petrol sales, however, remained unknown because the month under review also saw more people commuting after remaining confined reception during the recent lockdown, while power load-shed- ding remained a challenge nationwide.

The sale of furnace oil, which is especially wont to generate electricity by independent power producers (IPPs), grew 20% to 0.37 million tons in September compared to 0.31 million tons within the prior month of August. the govt switched- on a number of the oil-fired power plants to satisfy demand for power consumers after a number of the gas-based plant faced shortage of fuel thanks to a drop by supply of gas from domes- tic fields. Sui Southern gas service Limited (SSGC) has reported a big drop by gas production thanks to falling of some five fields redundant in recent times.

In this backdrop, the sale of furnace oil surged to a two- month high in September. “Strong furnace oil (FO) demand from the facility sector limited the general monthly decline in POL (petroleum, oil and lubricant) sales; September 2020 saw the very best monthly sales in FO since Jul-2018,” JS Research analyst Ali H Zaidi said during a brief report on POL sales.

The sale of petrol and diesel dropped, while furnace oil up also dropped compared to September year-on-year.

Overall, the primary quarter (Jul- Sep) of FY21 saw strong volu- metric sales of 4.74 million ton, reflecting a rise of 14% on a quarter-on-quarter basis, and eight on year-on- year basis.

On a year-on-year basis, increases were seen across three major contributors; petrol sales up by 6%, diesel by 7% and furnace oil by 28%. “Strong furnace oil sales are likely to prevail within the com- ing months as FO-based gen- eration continues thanks to gas supply issues,” Zaidi said.

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