Sales of oil products crawl up 3% in July
PHOTO: REUTERS
Sales of petroleum products improved 3% to 1.66 million tons in July 2020 mainly due to restart of furnace oil-based power plants to meet growing demand for electricity in the scorching summer season and reopening of more factories and industries as the country emerged from a months-long lockdown.
Sales grew 3% compared to both June 2020 and July 2019, brokerage houses reported citing data of the Oil Companies Advisory Committee (OCAC).
Oil-fired plants produce the most expensive power. The government has kept such plants as a last option in its priority list since the induction of new coal and gas/RLNG (regasified liquefied natural gas)-based plants with installed capacity of around 10,000 megawatts in recent years.
Sales of furnace oil increased 109% to 0.24 million tons in July compared to 0.11 million tons in June.
Meanwhile, sales of commuters’ fuel like petrol inched down 1% to 0.72 million tons in July compared to 0.73 million tons in June as a significant increase of about 25% in the petrol price and people’s limited movement under the partial lockdown discouraged the use of petrol to some extent.
Sales of factories’ fuel like diesel dropped 10% to 0.68 million tons in July compared to 0.75 million tons in the previous month.
Year-on-year data
Sales of furnace oil dropped 21% on a year-on-year basis to 0.30 million tons in July 2020 compared to the same month of previous year.
Sales of petrol and diesel surged 9% and 16% to 0.66 million tons and 0.58 million tons respectively.
Company-wise sales
Hascol Petroleum posted the highest growth of 26% in sales on a month-on-month basis, led by a double-digit growth in petrol and diesel sales, JS Research reported.
Shell Pakistan posted a 32% month-on-month growth in diesel sales and 7% growth in petrol sales. Attock Petroleum enjoyed strong furnace oil demand during the month.
Pakistan State Oil (PSO) recorded a phenomenal 266% month-on-month growth in furnace oil sales. However, fall in its diesel and petrol sales was substantial enough to counter the growth in furnace oil sales.
It was the only oil marketing company that posted a month-on-month decline in overall sales in July 2020.
Published in The Express Tribune, August 6th, 2020.
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