Monthly petroleum sales in the country have been weakening due economic slowdown, rising inflation, and depreciating currency. The story for the latest month, October 2023 is the same as the overall petroleum sales by the oil marketing companies during the month fellby 24 percent year-on-year. The decline is attributable to the same factors: rising petroleum prices versus those in the previous year and the economic turmoil. Moreover, higher reliance on coal-based power generation has also left furnace oil consumption high and dry, which adds significantly to the overall decline. In October 2023, furnace oil sales were down by 74 percent year-on-year. Whereas, the motor gasoline and high-speed diesel sales were lower by 15 and 21 percent year-on-year.
However, it has been seen that due to falling petroleum product prices over the last couple of months, the volumetric sales by the OMC sector have witnessed a recovery on a month-on-month basis. Though furnace oil sales were still down on a month-on-month basis - primarily due to the absence of summer season and high-power demand for the fuel – both retail fuels witnessed growth in volumes. Motor gasoline volumes were up by 12 percent month-on-month, and diesel volumes were up by 42 percent. The rise in MS sales was due to the cumulative price drop of Rs48 per liter in the month. The jump in HSD volumes was prices fall as well as thestart of wheat plantation in the period. And then the low base of the previous month – September 2023 – also led to the jump in volumes on a month-on-month basis.
That being said, the volumetric sales by the OMCs during the first 4 months of FY24 (4MFY24) were still down by almost 17 percent year-on-year. Going forward, the volumes are expected to recover during the rest of For FY24 as prices have come down; there is a major crop season ahead; and interest rates are also expected to come down.
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