Karachi March 1 2023: Sales of petroleum products decreased by 16 percent month on month to 1.216 million tons during February 2023 on higher fuel prices and slowdown in economic activity, according to data shared by OCAC.
Government of Pakistan significantly increase prices of petroleum product in February to pass on the steep rupee devaluation and collect Petroleum Development Levy to meet IMF conditions. Motor Spirit prices increase by 69.32 percent on year on year and 21.24 percent on month on month to average PKR 261.56 per liter in the month of February 2023. On the similar pattern Diesel prices jump by 81.38 percent on year on year and 18.98 percent on month on month to average PKR 261.56 per liter during the month.
Sales of Motor Spirit (MS) during February 2023 decreased by 15 percent MoM to 551 thousand tons compared to 648 thousand tons during January 2023. On a YoY basis, the sales of MS were also decreased by 15 percent.
During 8MFY23, the MS sales have been witnessed at 5.03 million tons compared to 5.91 million tons during the same period last year. The decline in sales is witnessed due to lower demand on the back of higher prices compared to last year.
The same trend has been witnessed in the sale of High-Speed Diesel (HSD), which is down by 18 percent month on month to 478 thousand tons during February 2023.
During 8MFY23, the HSD sales witnessed 4.42 million tons compared to 5.69 million tons during the same period last year. The decline in sales is witnessed due to lower demand on the back of higher prices compared to last year.
Sales of Furnace oil (FO) were also down by 17 percent month on month during February 2023 to 118 thousand tons.
During 8MFY23, the FO sales witnessed 1.71 million tons compared to 2.39 million tons during the same period last year. The decline in sales is witnessed due to lower demand from power producers.
