Petroleum product sales by the oil marketing sector remain upbeat in 8MFY17; volumes sold by the OMCs in 8MFY17 were over their five and ten-year compound annual growth rates. Even after a 23 percent year-on-year dent in furnace oil volumes in February17, the 8MFY17 volumes hold sway primarily due robust demand in retails fuels like petrol and diesel.
For the latest month February 2017 the overall petroleum products sold by the OMCs were down by four percent year-on-year primarily due to lower furnace oil sales. The volumes for black oil slipped by 30 percent month-on-month, and 23 percent year-on-year. However, 8MFY17 figures for furnace oil were up by 11 percent year-on-year, which was due to higher demand by the power sector, the largest consumer of furnace oil. Also, the increase in margins on furnace oil due to over 35 percent increase in furnace oil prices has been a key growth driver in market share.
Unlike furnace oil, retail fuels like motor gasoline and high speed diesel have both witnessed high growth in February 2017; in 8MFY17, sales and imports of these fuels touted double digit growth. HSD volumes sold were up by 10 percent year-on-year, while those of motor gasoline were higher by 17 percent year-on-year.
With summers coming up, the increased consumption in retail fuel will continue to record higher offtake. Furnace oil too spikes in summer times due to increased demand from the power sector. However, market is expecting some restriction in consumption here as new capacities being added are largely coal-based.
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