Islamabad June 1 2023: Sales of petroleum products increased by 11 percent month on month to 1.30 million tons during May 2023 despite due to higher demand from agriculture sector and power sector, according to data shared by OCAC.
However, Petroleum sales Plunged 40 percent on year on year basis due to economic slowdown and higher prices. During 11MFY23, overall petroleum sales decreased by 26 percent year on year to 15.26 million tons compared to 20.62 million tons during the same period last year.
During the month of May 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 0.36 percent and 6.95 percent during May 2023.
However, Motor Spirit prices increase by 83.79 percent on year on year to average PKR 276.84 per liter in the month of May 2023. On the similar pattern Diesel prices increased by 88.75 percent on year on year to average PKR 273.50 per liter during the month.
Sales of Motor Spirit (MS) during May 2023 increased by 4 percent MoM to 0.6 million tons compared to 0.58 thousand tons during May 2023 due to higher traveling on eve of Eid. On a YoY basis, the sales of MS were decreased by 24 percent.
During 11MFY23, the MS sales have been witnessed at 6.78 million tons compared to 8.24 million tons during the same period last year. 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 recovered 18 percent month on month to 0.54 million tons during May 2023 due to higher demand from agriculture sector for rice and cotton harvesting.
During 11MFY23, the HSD sales witnessed at 5.83 million tons compared to 8.15 million tons during the same period last year. The decline in sales is witnessed due to lower demand on the back of higher prices and lower demand from transportation due to economic slowdown compared to last year.
Sales of Furnace oil (FO) were increased by 26 percent month on month during May 2023 to 0.09 million tons. During 11MFY23, the FO sales witnessed 1.96 million tons compared to 3.57 million tons during the same period 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.
