Karachi January 3 2022: Pakistan sales of petroleum products decreased by 11.4 percent to 1.33 million tons during December 2022 when compared with the sales of the same month last year due to substantial increase in prices and slowdown in economic activity.
The petroleum sales during the month of December decline by 13.6 percent when compared with sales of previous month. Moreover, petroleum sales during the first half of this fiscal year decreased by 19 percent to 9.03 million tons when compared with 11.1 million tons in the same period last year.
Motor Gasoline (petrol) prices increased by 54 percent year on year to PKR 221.47 per liter compared to price of PKR 143.74 per liter a year ago. Following the same path prices of Hi-Speed Diesel witnessed jump of 66 percent year on year to PKR 233.26 per liter when compared with PKR 140.57 per liter a year earlier.
Pakistan economic activity measured by Large Scale Manufacturing Sector Index has shown a decline of 2.89% during July-October 2022-23 when compared with the same period of last year as State Bank of Pakistan increased interest rates to a high of 23 years and unprecedented floods.
The country has received nearly 190% more rain than the 30-year average in the quarter through August this year, totaling 390.7 millimeters (15.38 inches). Sindh province, with a population of 50 million, was hardest hit, getting 466% more rain than the 30-year average.
Sales of Motor Spirit (MS) during December 2022 decreased by 11 percent year-on-year to 0.62 million tons compared to 0.70 million tons during December 2021.
During first half fiscal year 2023, the MS sales have been witnessed at 3.83 million tons compared to 4.51 million tons during the same period last year. Sales of MS decreased by 15 percent during first half. The decline in sales is witnessed due to lower demand on the back of higher prices compared to last year and reduction in mobility due to higher monsoon rains.
The same trend has been witnessed in the sale of High-Speed Diesel (HSD), which declined by 15 percent year on year during December 2022 to 0.52 million tons. The reason for decline in HSD sales was lower logistic movement and less usage in Agriculture tubewells.
During first half of fiscal year 2023, the HSD sales witnessed at 3.36 million tons compared to 4.36 million tons during the same period last year. Sales of HSD decreased by 23 percent during first half.
Sales of Furnace oil (FO) were also down by 10 percent year on year during December 2022 to 0.12 million tons. The decline in sales is witnessed due to lower demand from power producers on higher cost of generation.
During first half of fiscal year 2023, the FO sales witnessed at 1.45 million tons compared to 1.91 million tons during the same period last year. Sales of FO decreased by 24 percent during first half of this fiscal year.