KARACHI: The first month of FY23 began with a 26 per cent year-on-year (YoY) decline in oil sales to 1.442 million tonnes, the lowest since February 2021.

Oil sales in July 2021 and June 2022 were 1.938m tonnes and 1.936m tonnes, respectively. The drop in sales of furnace oil (FO), high speed diesel (HSD), and petrol by 5pc, 38pc, and 27pc, respectively, to 350,000 tonnes, 444,000 tonnes, and 594,000 tonnes in July from 367,000 tonnes, 721,000 tonnes, and 808,000 tonnes in July 2021 was the main reason for the overall drop in country’s oil sales.

Saad Ziker of Top Line Securities said depressed oil sales mainly occurred due to Eidul Azha holidays during the first half of July, when inter-provincial transportation activity subsided, leading to low HSD sales, and the monsoon season across the country resulted in lower traffic on the roads.

Furthermore, he believed that the 26pc and 41pc increases in petrol and diesel prices since 2June 2022 resulted in lower demand for petroleum products and an increase in use of public transportation and carpooling.

He predicted that oil sales would fall by 15-20pc YoY in FY23, owing to low agricultural growth, a likely decline in auto sales, and an increase in petroleum prices.

Published in Dawn, August 3rd, 2022