The sale of petroleum oil products recorded double-digit growth in December 2020 following consistent revival of economic activities as major contribution came from the spike in demand for furnace oil to produce electricity during the ongoing gas crisis.
According to brokerage houses, sales of petroleum oil products surged 16% to 1.59 million tons in December compared to 1.37 million tons in the same month of previous year.
“Total POL (petroleum, oil and lubricant) sales rose...with growth witnessed across all major fuel segments,” JS Research analyst Ali Zaidi said in a commentary on Tuesday. The greatest rise was seen in the demand for black oil with 0.24 million tons of furnace oil sold during December 2020.
“This hike was not only the greatest in percentage terms (108% year-on-year) but also in absolute terms (0.12 million tons),” he said, adding that the spike in furnace oil demand was expected given the ongoing gas crisis. In this regard, it would be fair to assume that sales of this deregulated segment would continue to impress at least during the winter season, he said.
Sales of motor spirit (MS/petrol) grew 5% to 0.67 million tons while high-speed diesel (HSD) sales enjoyed double-digit growth of 13% to 0.62 million tons during the month under review compared to the same month of last year.
Overall, sales for six months (July-December 2020) posted 12% growth, “on the back of increasing economic activity and trade as compared to last year,” Taurus Securities said in a commentary.
Published in The Express Tribune, January 6th, 2021.
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