September 09, 2006	Saturday	Sha'aban 15, 1427

KARACHI, Sept 8: Sales of overall petroleum products surged by 38 per cent to 1.534 million tons in July this year as compared to 1.11 million tons in the same month a year ago.

According to figures compiled by the Oil Companies Advisory Committee (OCAC), furnace oil took a lead whose sales surged by 115 per cent to 659,713 tons in July 2006 as compared to 307,263 tons in July 2005.

With its greater usage in thermal power generation, demand for furnace oil showed an impressive growth.

An analyst at Jehangir Siddiqui Research attributed its higher consumption to the rising electricity demand in the country.

On the other hand, the impact of heavy rainfalls (inverse relation with furnace oil usage) during the month under review was not visible, as water outflow from dams is linked with agricultural requirements and canals were already going through their critical levels.

He said furnace oil sales in July 2006 also compared favourably with the preceding month, depicting a growth of eight per cent over June 2006 sales of 609,000 tons.

However, he said the consumption of furnace oil was likely to slowdown in coming months due rising water availability for hydel power generation in the wake of healthy monsoon season.

He said the 2006-07 sales of furnace oil was estimated at 5.5m tons.

Sales of high speed diesel (HSD) surged by 9.7 per cent in July 2006 to 643,274 tons from 586,582 tons in the same month last year.

Petrol sales declined by 1.4 per cent in July 2006 to 99,134 tons as compared to 100,393 tons in July 2005, as shifting of vehicles to CNG and LPG from petrol is increasing.

Sales of kerosene oil and light diesel oil (LDO) jumped to 17,860 tons and 16,569 tons in July 2006, respectively, as compared to 12,175 tons and 10,091 tons in July 2005.

JP-1 sales plunged by five per cent in July 2006 to 81,967 tons from 86,360 tons in July 2005.