AIRLINK 170.57 Decreased By ▼ -2.58 (-1.49%)
BOP 11.18 Increased By ▲ 0.53 (4.98%)
CNERGY 8.41 Decreased By ▼ -0.11 (-1.29%)
CPHL 99.73 Increased By ▲ 2.27 (2.33%)
FCCL 46.60 Decreased By ▼ -0.65 (-1.38%)
FFL 15.15 Decreased By ▼ -0.27 (-1.75%)
FLYNG 27.55 Decreased By ▼ -0.58 (-2.06%)
HUBC 137.78 Decreased By ▼ -1.13 (-0.81%)
HUMNL 12.92 Increased By ▲ 0.11 (0.86%)
KEL 4.54 No Change ▼ 0.00 (0%)
KOSM 5.36 Decreased By ▼ -0.19 (-3.42%)
MLCF 62.40 Increased By ▲ 0.14 (0.22%)
OGDC 212.16 Decreased By ▼ -2.59 (-1.21%)
PACE 5.42 Decreased By ▼ -0.13 (-2.34%)
PAEL 47.18 Increased By ▲ 2.32 (5.17%)
PIAHCLA 18.48 Decreased By ▼ -0.22 (-1.18%)
PIBTL 10.36 Decreased By ▼ -0.38 (-3.54%)
POWER 12.33 Increased By ▲ 0.07 (0.57%)
PPL 169.60 Decreased By ▼ -4.27 (-2.46%)
PRL 35.85 Decreased By ▼ -0.37 (-1.02%)
PTC 23.09 Decreased By ▼ -0.47 (-1.99%)
SEARL 96.26 Increased By ▲ 0.95 (1%)
SSGC 39.52 Increased By ▲ 0.39 (1%)
SYM 13.84 Decreased By ▼ -0.18 (-1.28%)
TELE 7.15 Decreased By ▼ -0.08 (-1.11%)
TPLP 10.03 Decreased By ▼ -0.26 (-2.53%)
TRG 63.48 Decreased By ▼ -1.20 (-1.86%)
WAVESAPP 9.99 Decreased By ▼ -0.05 (-0.5%)
WTL 1.31 Decreased By ▼ -0.02 (-1.5%)
YOUW 3.66 Decreased By ▼ -0.04 (-1.08%)
BR100 12,305 Decreased By -186.6 (-1.49%)
BR30 37,415 Decreased By -278.7 (-0.74%)
KSE100 114,853 Decreased By -1335.9 (-1.15%)
KSE30 35,217 Decreased By -533.1 (-1.49%)

With the beginning of a new fiscal year, oil sales by Oil Marketing Companies (OMCs) in Pakistan experienced a notable decline. Total petroleum sales for the month of July-24 were recorded at 1.20 million tons, a decrease of 11 percent year-on-year This reduction was attributed to several ongoing factors including increased prices of Motor Spirit (MS) and High-Speed Diesel (HSD), the availability of smuggled petroleum products from Iran, and reduced demand for Furnace Oil (FO)-based power generation.

Breakdown of July-24 sales show that petrol (MS) sales decreased by 10 percent year-on-year due to higher prices, which discouraged consumption. Diesel (HSD) sales fell by 6 percent year-on-year due to similar factors affecting MS sales. Sales of furnace oil (FO) also saw a significant plunge of 46 percent year-on-year YoY, with volumes at 0.08 million tons. This reduction was mainly due to a shift away from FO-based power generation. On a month-on-month basis, petroleum product dispatches contracted by 17 percent in July-24 with MS sales dropping by 16 percent, HSD sales by 18 percent, and FO sales by 27 percent month-on-month respectively.

Back in FY24, the overall OMC volumes were down by 8 percent year-on-year. Sales of MS and HSD experienced a decline of 3.8 and 1.7 percent year-on-year respectively, due to slower than expected economic recovery, elevated fuel prices, and an influx of smuggled fuel into the country.

While the outlook for the upcoming fiscal year suggests a potential mild recovery in petroleum sales, driven by the low base effect from FY24, the global geopolitical situation and fluctuating oil prices will continue to play a crucial role in shaping the market dynamics. Moreover, the biggest threat continues to be the smuggling of petroleum products that must be addressed completely.

Comments

Comments are closed.

KU Aug 07, 2024 11:55am
Since BR does not show the plight of diesel/petrol consumers, they can at least imagine affects of costly fuel resulting in reduced cultivated agri-area, costly goods-transport, industry shutdown.
thumb_up Recommended (0)