Islamabad May 3 2022: Sales of petroleum products increased by 6 percent month on month to 1.17 million tons during April 2023 despite due to higher travelling on eid and demand from agriculture sector, according to data shared by OCAC.
However, Petroleum sales are decreased by 47 percent on year on year basis due to economic slowdown and higher prices. During 10MFY23, overall petroleum sales decreased by 24 percent year on year to 13.97 million tons compared to 18.44 million tons during the same period last year.
Government of Pakistan significantly increase prices of petroleum product during the year to pass on the steep rupee devaluation and collect Petroleum Development Levy to meet IMF conditions. Motor Spirit prices increase by 84.46 percent on year on year and 2.56 percent on month on month to average PKR 277.85 per liter in the month of April 2023. On the similar pattern Diesel prices doubles on year on year and increased by 1.84 percent on month on month to average PKR 293.92 per liter during the month.
Sales of Motor Spirit (MS) during April 2023 increased by 4 percent MoM to 580 thousand tons compared to 558 thousand tons during March 2023 due to higher traveling on eve of Eid. On a YoY basis, the sales of MS were decreased by 25 percent.
During 10MFY23, the MS sales have been witnessed at 6.17 million tons compared to 7.45 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 recovered 16 percent month on month to 461 thousand tons during April 2023 due to higher demand from agriculture sector for wheat harvesting.
During 10MFY23, the HSD sales witnessed 5.28 million tons compared to 7.30 million tons during the same period last year. The decline in sales is witnessed due to lower demand on the back of higher prices and lower demand from transportation due to economic slowdown compared to last year.
Sales of Furnace oil (FO) were also down by 16 percent month on month during April 2023 to 72 thousand tons.
“The demand for black oil, mainly attributable to a limited furnace oil-based power generation given the reduced demand for electricity across the country” says PSO Chairman Zafar I. Usmani.
During 10MFY23, the FO sales witnessed 1.87 million tons compared to 3.11 million tons during the same period last year. The decline in sales is witnessed due to lower demand from power producers.