Oil sales drop to decade low

Following a notable slowdown in economic growth and contraction in the number of vehicles

Our Correspondent April 03, 2019
PHOTO: REUTERS

KARACHI: Petroleum oil sales dropped to a decade low in first nine months of the current fiscal year following a notable slowdown in economic growth and contraction in the number of vehicles.

High-speed diesel (HSD) sales dropped 20% to 5.4 million tons in the first nine months (July-March) of FY19, which “is more than a decade low”, Topline Securities commented.

“Motor spirit (petrol) growth remained limited to 1% (to 5.52 million tons), almost a nine-year low on account of decline in car and bike sales by 4.5% and 5% respectively in first eight months of FY19,” it said.

Cumulatively, the petroleum oil sales were down 27% in the nine months under review, dragged down by a 60% decline in furnace oil (FO) sales and 20% drop in HSD sales.

“The decline in FO sales continues due to its low usage in power generation after commencement of new RLNG (re-gasified liquefied natural gas) and coal-based power plants,” it said.

HSD sales remained on the lower side on the back of slowdown in economy as indicated by 7MFY19 large-scale manufacturing (LSM) decline of 2.3% against 7% growth in 7MFY18. Furthermore, continuous smuggling from Iran could also be attributed to this decline, it added.

Published in The Express Tribune, April 3rd, 2019.

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COMMENTS (1)

Dr. Asjad Iqbal | 1 year ago | Reply | Recommend When international oil prices are falling then why is Inran Khan increasing petrol prices? And why is additional tax being put on petrol? The ordinary people from motorcycle owners, to rikshaw drivers, to taxi owners and the poor people who have to pay increased fares on public transport, are giving 'gaalian' to Imran Khan.
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