KARACHI, Dec 26: The sale of petrol in the country has declined by nine per cent during July-November, 2005 as compared to the same period of the previous year due to the frequent increase in petrol prices coupled with the rising demand for CNG.

A total of 565,000 tons of petrol was sold during July-November, 2005 as compared to 515,000 tons in the same period of 2004, industry sources said.

However, petrol sales in July-June 2004-05 rose by 5.48 per cent to 1.322 million tons as compared to 1.253 million tons in the corresponding period of 2003-04.

“Rising prices of petrol is the main reason in switching over to alternate source of fuel like CNG by the owners of vehicles,” an industry official said.

The petrol price was Rs33.78 per litre on January 1, 2004, climbing to Rs56.29 per litre on December 15, 2005, due to the crude oil price surge in the Arab Gulf.

“Petrol sales will remain depressed and will further fall in case petrol becomes costlier in coming months,” the official said.

Despite the increase in local car production and import of new and used cars as well as increase in local production of motorcycles, petrol sales at the pumping stations are not picking up.

The Car plants rolled out 126,817 units during 2004-05 as compared to 99,263 units in 2003-04 — up by 27.76 per cent. The production of cars during July-November 2005 was recorded at 58,832 units as compared to 45,344 units in the same period of 2004.

During these years, the demand for CNG continued to rise in view of rising petrol prices and the buyers, inspired by cheap auto financing by leasing companies, made bookings with the local producers for factory fitted CNG vehicles. More than 50 per cent of cars, being rolled out by the leading car makers, have now factory- fitted CNGs as compared to 25 per cent a year ago. This is the reason that could not help in increase in petrol consumption in the country. Besides, car makers are also assembling fuel-efficient cars and oil marketing companies (OMC) have introduced improved quality of petrol that gives more mileage.

Similarly, production of motorcycles during July-June 2004-05 stood at 476,333 units as against 327,446 units in 2003-04, rising by 45 per cent. This data included the production figures of only Honda, Yamaha, Suzuki, Sohrab, Qingqi and Tri-wheelers only, while data on a large number of other Chinese bike makers, who had produced over 100,000 units during 2004-05, is not available. A total of 201,708 units of bikes were produced during July-November 2005, as against 158,713 units in the same period of last year. The production of motorcycles both by Japanese and Chinese assemblers is projected to cross over 650,000 units by the end of current fiscal.

Due to burgeoning increase in petrol rates, the demand for motorcycle has been on the rise as it is still a cheaper source of travelling for the people, who cannot afford new and even used cars that consumes, too, much petrol. The People now have a wide choice to select a 70cc Chinese bike at price ranging between Rs34,000-Rs39,000 as compared to Rs54,000 of Honda CDI-70.

Thin petrol sales can be witnessed at petrol pumps, which mostly remained either deserted or had fewer car owners as compared to a long queue of consumers at the CNG filling points. Many petrol consumers, who earlier got their fuel tanks full, are now buying a few litres to meet their essential travel needs.

Many higher engine capacity car-owners like Toyota Corolla, and Honda Civic are also switching over to CNG. Even people, who have purchased used cars, are opting for CNG.