KARACHI: With record petrol sales achieved in FY21, Pakistan’s overall oil sales increased by 18 per cent year-on-year to 19.4 million tonnes, signalling a sharp economic recovery compared with the 12pc drop in FY20 owing to the Covid-19 related lockdowns.

In June a jump of 15pc was seen in the overall oil sales to 1.862m tonnes from 1.615m tonnes in the same month in FY20. Petrol sales in the last month of outgoing fiscal year grew by 4pc to 755,000 tonnes from 726,000 tonnes in June 2020.

Furnace oil (FO) sales registered a massive hike of 53pc to 2.965m tonnes in FY21 followed by 16pc rise in high speed diesel (HSD) to 7.672m tonnes and 12pc in petrol to 8.208m tonnes.

Increase of 16pc in HSD sales can be attributed to rise in bus and truck sales to 3,942 units in 11MFY21 from 3,380 units as per figures of Pakistan Automotive Manufacturers Association.

FO sales posted a whooping growth of 176pc in June 2021 to 315,000 tonnes from 114,000 tonnes in June 2020, while HSD sales slightly fell to 752,000 tonnes from 753,000 tonnes.

Umair Naseer of Top Line Securities attributed the jump in petrol sales to rising car and bike sales. Car sales during 11MFY21 swelled to 139,613 units from 89,130 units in the same period last fiscal. Motorcycle and three-wheelers sales hit 1.747m units from 1.222m units in 11MFY21.

“FO sales soared owing to increased demand from FO based power plants. FO sales were up 176pc YoY in June 2021 as reduction in Hydel power generation and scheduled closure of Engro RLNG Terminal increased furnace oil demand,” Mr Naseer said.

PSO was able to improve its market share from 44pc in FY20 to 46pc in FY21 as company’s oil sales rose by 23pc, he added. In June, sales clocked in at 858,000 tonnes, which is the highest monthly sales recorded by PSO in FY21.

Published in Dawn, July 2nd, 2021