Robust car sales drive up fuel oil demand
OMC sales grow 10% to 2.48m tons in the month
PHOTO: AFP
KARACHI:
The demand for fuel oils remained high in August 2017, propelled by an increase in sales of cars in Pakistan, said a research house on Wednesday.
“Sales of oil marketing companies (OMCs) grew 10% year-on-year to 2.48 million tons (in August this year),” Topline Securities’ analyst Umair Naseer said in a report prepared for his clients.
The strong growth in sales of retail fuel products was attributed to a robust growth in auto sales and influx of imported cars. “Auto sales grew 15% year-on-year in August 2017,” he said.
Car sales jump 14% to 213,119 units
Diesel and petrol (white oil) sales surged 25% each to 0.80 million tons and 0.68 million tons, respectively, in August.
Furnace oil sales, however, dropped 7% to 0.90 million tons due to lower demand from power producers, Naseer said.
Cumulatively, in the first two months (July and August) of the current financial year 2017-18, fuel sales edged up 4% to 4.55 million tons.
For the full fiscal year 2017-18, “we anticipate oil sales will improve 6% to 27.7 million tons,” he said.
According to company-wise data, Hascol Petroleum recorded a handsome sales growth of 65% year-on-year in August 2017 with the installation of new storage facilities in Mehmood Kot and Sahiwal.
Auto sales jump to 20,720 units, up 21.5%
Pakistan State Oil (PSO) - the state-owned oil marketing major - also outperformed the market as sales accelerated 14%, supported by higher diesel demand that surged 57% to 0.40 million tons.
PSO’s market share improved two percentage points to 58% in August compared to 56% in the same month of previous year. “This came at the expense of Shell, which lost its market share that dropped to 5% from 9% in the same period,” he said.
Published in The Express Tribune, September 7th, 2017.
The demand for fuel oils remained high in August 2017, propelled by an increase in sales of cars in Pakistan, said a research house on Wednesday.
“Sales of oil marketing companies (OMCs) grew 10% year-on-year to 2.48 million tons (in August this year),” Topline Securities’ analyst Umair Naseer said in a report prepared for his clients.
The strong growth in sales of retail fuel products was attributed to a robust growth in auto sales and influx of imported cars. “Auto sales grew 15% year-on-year in August 2017,” he said.
Car sales jump 14% to 213,119 units
Diesel and petrol (white oil) sales surged 25% each to 0.80 million tons and 0.68 million tons, respectively, in August.
Furnace oil sales, however, dropped 7% to 0.90 million tons due to lower demand from power producers, Naseer said.
Cumulatively, in the first two months (July and August) of the current financial year 2017-18, fuel sales edged up 4% to 4.55 million tons.
For the full fiscal year 2017-18, “we anticipate oil sales will improve 6% to 27.7 million tons,” he said.
According to company-wise data, Hascol Petroleum recorded a handsome sales growth of 65% year-on-year in August 2017 with the installation of new storage facilities in Mehmood Kot and Sahiwal.
Auto sales jump to 20,720 units, up 21.5%
Pakistan State Oil (PSO) - the state-owned oil marketing major - also outperformed the market as sales accelerated 14%, supported by higher diesel demand that surged 57% to 0.40 million tons.
PSO’s market share improved two percentage points to 58% in August compared to 56% in the same month of previous year. “This came at the expense of Shell, which lost its market share that dropped to 5% from 9% in the same period,” he said.
Published in The Express Tribune, September 7th, 2017.