Oil sales have dropped by 33 percent in the first quarter of the fiscal year 2018-19, reaching a four-year low.
The decline occurred amid a massive decline in furnace oil volume in the face of the government’s decision to opt for alternative, cheaper fuel like RLNG and coal.
Oil sales during July-September in the fiscal year 2018-19 declined to 4.751 million tons, slumping exactly by 33 percent. According to the details, the furnace oil sales met a sharp decline by 67 percent to 848,000 metric tons.
The sales of petrol and high-speed diesel dropped by 2 percent to 1.896 million metric tons and 19 percent to 1.826 million tons respectively.
A report by Topline Securities from September 2018 states that the oil sales dropped by 21 percent to 1.763 million metric tons owing to a massive decline i.e. 61 percent in sales of furnace oil. The report attributed this decline to the use of alternative power generation sources like coal and RLNG.
Moreover, the report further compared the oil sales of August 2018 with the same month last year and identified a 46 percent decline. On the contrary, sales of petrol and diesel met a five percent rise.
Notably, last year’s sales of Motor Spirit/High-speed Diesel (MS/HSD) dropped by 11 percent and 38 percent owing to constricted purchases by the dealers and pump owners as the government had announced to decrease the Petroleum, Oil, Lubricants (POL) prices.
Nonetheless, Syeda Humaira Akhtar, an analyst from BMA Capital Management, stated that the furnace oil market dynamics are recovering. Although the sales volume is dropping sharply, the customer base is switching to cash-based customers.
The rising market share of small dealers has overshadowed the share of Pakistan State Oil (PSO). In the first quarter of the fiscal year 2018-19, Attock Petroleum and HASCOL conquered the furnace oil market. However, they need to do much more to reach the top position.
Via Dunya News