AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

Where OMC sales remained exuberant in FY15, the year FY16 for petroleum product sales took off on a rather depressed note as major petroleum products witnessed a decline in volumes. The key reason for the decline in OMC sales in July 2015 has been the monsoon rains and floods across the country.
Overall, the petroleum volumes sold by the oil marketing segment show a decline of over 14 percent year-on-year in July 2015, while the same dropped by over nine percent in month-on-month comparison.
On individual basis, the furnace oil consumption slipped staggeringly in July 2015 by 25 percent year-on-year. the same steep decline can also be seem when July 2015 volumes are compared to June 2015, which is around 13 percent. And apart from the issues like liquidity of the energy sector, flash flooding has played a contributing role in restricting volumes.
For high speed diesel, the industry-wide sales were equally discouraging due to industry challenges like smuggling along with floods in the ongoing year. Where the year-on-year HSD sales volumes depicted a decline of 18.7 percent in July 2015, the month-on-month sales were 14.8 percent lower in the same month.
The rosiest of the lot has been motor gasoline (petrol), which witnessed a decline in volumes by over nine percent compared to previous month but has been able to keep up with its growth trend on a yearly basis. Here, the petrol consumption grew by a staggering 27 percent year-on-year in July 2015 due to lower prices, increased demand, and limited availability of CNG.
From the looks of it, it might look like the industry is pacing down in generating demand. But the reality is a lot different. With flooding situation easing, it is expected that the volumes will normalise. Also, according to Optimus Capital Management, the furnace oil sales will pick up due to easing liquidity concerns owing to expected reduction in power subsidy as committed with IMF and increase in gas tariff on captive power plants, which shall induce higher furnace oil sales. HSD too will be in for some recovery as the analysts believe that the Budget proposal of Tractor Scheme FY16 will be beneficial. As far as motor gasoline is concerned, there is not stopping to the rising demand. The illustration shows what OCAC has forecasted for major petroleum products, and motor gasoline is up and rising.

Comments

Comments are closed.