Islamabad July 4 2023: Sales of petroleum products decreased by 26 percent to 16.6 million tons during fiscal year 2023 due to higher petroleum prices and lower demand from power sector, according to data shared by OCAC.
During COVID, in fiscal year 2020, country petroleum sales recorded at 16.4 million tons which was the low of 13 years.
During the month of June 2023, Government reduce the prices of petroleum products in order to pass on the impact of decreasing prices trend of petroleum products in international market and provide maximum relief to the masses. Average Motor Spirit and High Speel Diesel declined by 5.04 percent and 7.17 percent during June 2023.
However, Motor Spirit prices increase by 20.61 percent on year on year to average PKR 263 per liter in the month of June 2023. On the similar pattern Diesel prices increased by 9.81 percent on year on year to average PKR 253.89 per liter during the month.
Sales of Motor Spirit (MS) during fiscal year 2023 decreased by 17 percent year on year to 7.4 million tons compared to 9.1 million tons in fiscal year 2022. The decline in sales is witnessed due to lower demand on the back of higher prices compared to last year.
The same trend has been witnessed in the sale of High-Speed Diesel (HSD), which recorded at 6.4 million tons compared to 8.9 million tons during the same period last year. The decline in sales is witnessed due to lower demand from transportation and agriculture sectors due to economic slowdown and higher prices compared to last year.
During Fiscal Year 2023, the Furnace Oil (FO) sales witnessed 2.1 million tons compared to 4.1 million tons during the last year. The decline in sales is witnessed due to lower demand from power producers.
“The demand for black oil, mainly attributable to a limited furnace oil-based power generation given the reduced demand for electricity across the country” says PSO Chairman Zafar I. Usmani.
