KARACHI: Declining demand for automobiles amid the economic slowdown is well reflected in the sales of petrol and diesel which fell by 18 per cent and 26pc, respectively, in the first four months of the current fiscal year.
As per data shared by Arif Habib Ltd (AHL), petrol sales fell to 2.54 million tonnes in July-October from 3.11m tonnes in the same period last fiscal year. Diesel sales plunged to 2.17m tonnes from 2.93m tonnes.
Both the companies in letters to their dealers did not mention any reason for raising prices.
Petrol and diesel sales recovered month-on-month by 8pc and 37pc to 0.68m tonnes and 0.71m tonnes in October but remained low by 11pc and 15pc year-on-year.
Overall petroleum consumption dips 22pc in 4MFY23
The country’s furnace oil sales came down by 26pc to 1.19m tonnes in July-October from 1.60m tonnes in 4MFY22.
The country’s overall two/three-wheelers sales fell to 298,368 units in 3MFY23 from 450,913 units in the same period last fiscal year. Car sales stood at 28,571 units versus 57,539 units while jeeps/pickups sales substantially slowed down to 5,994 units from 11,358 units.
Head of Research Pak Kuwait Investment Company, Samiullah Tariq said power generation companies did not consume furnace oil due to its higher prices. Besides, overall power generation had also remained low this year.
As a result, the overall petroleum consumption in July-October 2022-23 posted a drop of 22pc to 6.15m tonnes from 7.85m tonnes suggesting a slowdown in economic indicators owing to monsoon season and floods, lower agriculture activities and higher petroleum prices.
In October, total petroleum sales went up by 8.8pc to 1.66m tonnes from 1.52m tonnes. However, year-on-year it fell by 16.5pc.
Bike makers raise prices
Pak Suzuki Motor Company Ltd (PSMCL) raised the prices of two-wheelers by Rs15,000-Rs20,000, effective from Tuesday, amid an improving sales trend in the last few months as compared to plummeting sales of other assemblers.
The new price of Suzuki GD110S, GS150 (standard), GSX125 and GR150 is Rs244,000, Rs266,000, Rs359,000 and Rs385,000. PSMCL sold 10,007 units in 3MFY23 as compared to 8,581 units in the same period last fiscal.
Two days back, Atlas Honda Ltd (AHL) also increased prices by Rs5,000-Rs15,000. The new rate CD70 (red and black), CD 70 Dream (red, black and silver), Pridor, CG125, CG125S, CB125 and CB150F is Rs121,500, Rs129,900, Rs161,900, Rs185,900, Rs219,500, Rs283,900, Rs353,900 and Rs357,900.
A dealer said the bike assemblers had been facing problems from May onward in importing parts and accessories due to the fixing of quota by the government which had affected the supply chain of parts, while raw material prices had been on the rise in world markets.
However, the rupee’s strengthening after Ishaq Dar took charge as finance minister must have offset the impact of rising raw material prices to some extent.
Published in Dawn, November 2nd, 2022