KARACHI: Oil sales during the first five months of the current fiscal (5MFY19) posted a decline of 33 per cent year-on-year (YoY) to 7.7 million tonnes, falling to the lowest level in over 10 years.
High speed diesel (HSD) fell by 21pc YoY during 5MFY19, while petrol sales dropped by two per cent (9-year low), followed by 68pc drop in furnace oil (FO) sales YoY.
During November 2018, oil sales clocked in at 1.3m tonnes (around 11 years low), down 32pc YoY – mainly dragged down by FO which posted a fall of 67pc YoY. Excluding FO, oil sales plunged by 22pc YoY.
Shankar Tarlega at Top Line Securities said steep decline in FO was on back of slower off take from domestic refineries reportedly and shift of national energy mix to other alternatives like RLNG and coal.
In white oil segment, motor spirit (MS) and HSD both witnessed decline of 5pc and 31pc YoY respectively during November 2018. Increase in MS prices by 29pc YoY squeezed consumers’ pockets amid higher inflation. HSD sales declined due to an increase in prices by 34pc YoY as well as smuggling fuel from Iran.
Published in Dawn, December 5th, 2018