KARACHI: The country’s overall oil sales rose by seven per cent to 6.431 million tonnes due to 32pc rise in furnace oil (FO) demand to 1.216m tonnes in the first four months of this fiscal year suggesting improvement in economic activities.

The high-speed diesel (HSD) and petrol sales also increased by six and four per cent to 2.319m tonnes and 2.736m tonnes, respectively, in July-October 2020-21 over the same period last year.

Overall oil sales in October posted 6pc growth to 1.699m tonnes as compared to October 2019 in which FO, HSD and petrol sales increased to 291,000 tonnes, 669,000 tonnes and 687,000 tonnes as compared to 200,000, 650,000 and 681,000 tonnes, up by 46pc, three per cent and one per cent respectively from October 2019, says Topline Research report quoting data of Oil Companies Advisory Council (OCAC).

The report attributed rising FO sales to low prices resulting in higher consumption for power generation and overall pickup in economic activities following improvement in Covid-19 situation.

Syed Masroor Hussain Zaidi at BMA Capital Management noted that HSD sales had risen because of increased international trade, while uptick in petrol sales emanated from increased inter-city and intra-city travel due to easing of Covid-19 restrictions.

Besides, car, two-, three-wheelers and light commercial vehicles and SUVs sales had also revived in the last few months after remaining dismal ahead of July, thus fuelling sales of petrol and diesel.

Published in Dawn, November 4th, 2020