Sale of petroleum products surges in September

Increases 14% on yearly basis to 2.15 million tons, says local brokerage house

Salman Siddiqui October 10, 2016
Increases 14% on yearly basis to 2.15 million tons, says local brokerage house. PHOTO: FILE

KARACHI: The sale of petroleum products remained robust in September with increased production of electricity during the summer and ever-growing population of cars and motorcycles.

A local brokerage house, using the Oil Companies Advisory Committee data, said sales surged 14% on a yearly basis to 2.15 million tons in September. Furnace oil and motor gasoline led the growth in sales, as they remain major fuels for electricity production and driving vehicles, respectively.

The power regulatory authority said in its latest report that furnace oil remained the second largest source of power production in August 2016. Besides, production from fuel oil surged in the month as compared to the same month last year.

Power producing companies generated 28% (3,054.42 GWh) power from oil, which was 26% (2,767.43 GWh) in August 2015, said National Electric Power Regulatory Authority (Nepra).

The Pakistan Automotive Manufacturers Association in its latest production and sales report said that the number of vehicles on roads increased by 15,170 for cars and 113,772 for motorcycles and three-wheelers, in the month of August 2016. Such vehicles mostly run on motor gasoline.

Fauji Oil Terminal and Distribution Company Chief Operating Officer Hassan Sobuctageen, while talking to reporters following an event, said that the consumption of oil would surge by 6 million tons per annum once truckers start transporting goods from Gwadar to Kashghar, China under the China-Pakistan Economic Corridor.

He noted that “the import of gasoline has increased by 40% in the last four years”.

Umair Naseer, an analyst at Topline Securities, said that the sale of furnace oil surged 18% on a yearly basis to 849,000 tons, sale of motor gasoline increased 16% to 577,000 tons, high speed diesel rose 9% to 627,000 tons while sale of other oil products also grew 9% to 96,000 tons in the month of September 2016.

The surge in sales of retail fuel, including gasoline and high speed diesel, are attributed “to improving macros, rising car sales and low oil prices,” he said.

The sales of the products in the quarter (July-September 2016) surged 19% to 6.54 million tons. Furnace oil remained the major driving force behind the growth.

Sales by companies

Hascol Petroleum and Attock Petroleum outperformed the market reporting growth of 87% (181,000 tons) and 16% (170,000 tons), respectively, in September alone. Pakistan State Oil (PSO), however, remained the market leader in terms of volumetric sales at 1.18 million tons with a growth of 10% in its sales.

Sales by Shell remained stagnant at 212,000 tons in the month.

Motor gasoline and high speed diesel, which are mostly consumed by vehicles, remained the major source of growth in sales by Hascol and APL. PSO remained market leader with significant growth in sales of furnace oil.

Published in The Express Tribune, October 11th, 2016.

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