Petroleum sales by the oil marketing companies are blooming, and the while part of the reason has been the rise in demand due to falling prices, part of it has to do with the summer season entering into full swing. For 10MFY15, overall petroleum sales stood at 15.3 million metric tons, which is around 4.5 percent rise year-on-year. During the 10-month period, motor gasoline - one of the three main petroleum products - witnessed a rise of 22 percent year-on-year, whereas high speed diesel (HSD) saw a rise of 11percent year-on-year, and furnace oil remained stagnant in the period.
On the other hand, OMC sales for the latest month, April 2015 depict some solid trends. Furnace oil, which seems to have remained stagnant in the 10-month period year-on-year, can be seen taking up the growth trajectory. For April 2015 alone, the month-on-month growth in furnace oil sales stood at an incline of 9.2 percent. The sales in April were 16 percent higher than the similar month last year. This trend is consonant with the furnace oil imports. Data by OCAC reveals that the furnace oil imports have also been an upward movement for the past couple of months.
The primary reason for the volumetric growth in furnace oil sales and imports is the seasonality factor; as the summer season picks pace, the demand for furnace oil, which still remains a key fuel for power generation, inches upwards. Also, the up tick in furnace oil consumption particularly in April is a result of Rs15 billion injected in the sector through grant to Pakistan State Oil, which eased the liquidity situation in the power sector.
Besides the building up trend of furnace oil, both HSD and motor gasoline saw a month-on-month increase in sales and imports. HSD witnessed a 23 percent growth, motor gasoline increased by around 15 percent month-on-month. Rise in motor gasoline consumption in April was also around 37 percent year-on-year, and this has been due to CNG curtailment along with declining its discount to petrol due to low petrol prices.
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