KARACHI: Total petroleum and lubricant sales clocked in at 1.67 million tons in April 2021, depicting a gigantic growth of 57 percent on year-on-year basis and 13 percent on month-on-month basis.
The growth was due to seasonality factor given higher economic activity in the holy month of Ramazan and low base of April 2020 amid country-wide lockdown last year resulting in a slowdown in sales volumes, analysts said. The growth in sales volumes is primarily attributable to economy displaying a remarkable resilience in driving retail fuel sales, higher trade activity (exports and imports) and growth in large-scale manufacturing, growth in agriculture output resulting in higher offtake of HSD, massive growth in automobile sales, and strict control on illegal or dumped fuel from Iran resulting in higher HSD sales, an analyst at Arif Habib Limited said.
During the first 10 months of Y21, sale of total petroleum products increased by 19 percent on YoY to 15.83 million tons versus 13.34 million tons in the same period in FY20.
Dissection of data revealed that major contribution to growth came from HSD and FO with offtake undergoing a jump to 6.16 million tons and 2.48 million tons, up by 20 percent and 48 percent on YoY against 5.15 million tons and 1.68 million tons in the same period last year.
Company wise, PSO posted the highest growth both on monthly and yearly basis up by 12 percent and 100 percent respectively. Among other listed companies SHEL, APL and BYCO managed to post the nominal growth on monthly basis while HASCOL on the other hand continue to post negative growth as company faces liquidity issue resulting in lower sales and decreased market share.
“In coming months we expect MS and HSD sales continue to post positive growth due to improving economic activities, higher automobiles demand and government action on smuggled MS and HSD,” an analyst at Darson Securities said.
Copyright Business Recorder, 2021
Comments
Comments are closed.