KARACHI: The POL sales rose to 1.59 million tons in December 2020 from 1.37 million tons in December 2019, reflecting a 16 percent increase over the period with growth seen across all major fuel segments.

Motor Spirit (MS) posted a 5.0 percent year-on-year growth in sales while High Speed Diesel enjoyed double digit growth of 13 percent on YoY during the month. However, the greatest rise in demand was seen in the black oil segment with 0.24 million of Furnace Oil (FO) sold during December 2020. This hike in demand was not only greatest in percentage terms (108 percent on YoY) but also in absolute terms (0.12 million tons).

“The rise in demand for Furnace Oil was expected given the ongoing gas crisis,” Ali H. Zaidi at JS Global Capital said. In this light, it would be fair to assume that sales in this de-regulated segment will continue to impress, at least during the winter season, he added.

Cumulatively during calendar year 2020, total POL sales registered a decline of 3.0 percent on YoY. While HSD and MS posted marginal growth of 1.0 percent on YoY each, the 13 percent on YoY decline in FO sales was the major cause for the decline. “This fall can be attributable to lower demand from the power sector prior to the gas crisis,” Zaidi said.

Copyright Business Recorder, 2021