Oil consumption rises 11% in November

Gas shortage increases reliance on expensive furnace oil, petrol.

KARACHI: Oil consumption increased by 11% in November on a yearly basis with an impressive performance from all mainstream products, according to provisional figures.

The increase seems phenomenal because floods had subdued agricultural activities in the same period last year, making it a low base for comparison, says a JS Global Capital research note.

Petrol sales also surged by a significant 34% as increased gas outages has made many commuters shift to the more expensive alternate petrol, adds the note.

Furnace oil, the highest selling product, consumption also jumped by 11% as power plants switched their reliance on furnace oil instead of gas due it its scarcity. High speed diesel volumes recorded a massive growth of 13%.

The industrial sector and CNG stations of Punjab face gas suspension for three days a week in December due to the chronic gas shortfall.

Hence, oil consumption reached 8.4 million tons in the first five months of the current financial year, up 5% on a yearly basis.

Attock Petroleum (APL) continues to outperform the industry as the company recorded a growth of 59% in November while market leader Pakistan State Oil posted a growth of 15%.

Published in The Express Tribune, December 14^th, 2011.