KARACHI, Dec 11: Diesel (HSD) sales during the first five months of the current financial year (July-November) increased by 14 per cent, which powered overall petroleum products sales by 13pc, over the corresponding period of the previous year.

An official of an Oil Marketing Company (OMC) who asked not to be named said on Tuesday that the Government; Oil Companies Advisory Committee (OCAC) and oil industry members should have foreseen the growing demand and built up buffer stocks accordingly.Analyst Farhan Mahmood at JS Global stated that with a 43 per cent weight in total oil consumption, sales of diesel increased by 14pc to 3.4m tons in the first five months of FY08.

The increase in local diesel sales was stated to be due to lower infiltration of illegal cheap Iranian diesel. This was attributed less to a greater surveillance and more a consequence of shortage of the product also in Iran.

Sector analyst said that increase in trading activities during Khariff harvesting season also increased diesel demand by the transportation sector — the major user of the product.

“With 63 per cent share in diesel market, PSO would be the main beneficiary of the rising pattern of diesel sales in Pakistan,” says analyst Mahmood.

He noted that against the 13 per cent growth in industry’s petroleum product sales, PSO recorded a gain of 17 per cent in its volume of sales and overall company’s market share improved to 69 per cent from 67 per cent in the 5MFY07.