Total energy sales for Petroleum Oil and Lubricant (POL) clocked-in at 2.05 million tons during January 2017, down 2.0 per cent on month-on-month basis, depicting a growth rate of 9.0pc on year-on-year basis.
The month-on-month decline was primarily led by High Sulphur Diesel (HSD), sales of which dropped down to 0.64 million tons, thereby portraying a decline of 8.0pc on month-on-month basis. The sales of Motor Gasoline (Mogas) observed a meager volumetric growth of 2.0pc on month-on-month basis.
The demand for Furnace Oil (FO) continued to grow amid the seasonal phenomenon of electricity mix tilting towards the product.
On the other hand, cumulative product demand in seven months of FY17 paints a positive picture with total off-take growing to 14.97 million tons, up by 17pc on year-on-year basis. "The sturdy sales volumes in 7MFY17 can be primarily attributable to lower product prices and increased infrastructural activities", Waleed Rehmani, an analyst at Arif Habib Limited said.
Pertinently, the price spread (difference in prices of retail products in given month and same month last year), which has been supportive for demand up till now, has been shrinking in FY17 and should largely reverse in February 2017, which may adversely impact demand going forward, he added.
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