Oil Marketing Companies’ (OMCs) sales for the month of April 2020 plunged by 35% to 1.07 million tons on a year-on-year basis as compared to 1.65 million tons in the same month in 2019.
However, on a month on month basis, the OMCs sales increased by 3% as compared to 1.03 million tons in March 2020. Sales of furnace oil witnessed a massive decline of 75% to 0.07 million tons, motor spirit saw a decline of 36% to 0.44 million tons and Hi-speed diesel saw a 16% year on year decline of 0.55 million tons, respectively.
Oil consumption started witnessing a rising trend after the government opted for a “smart lockdown” and issued Standard Operating Procedures (SOP) for construction and export-oriented industries.
On a monthly basis, motor spirit sales dropped by 21% while HSD and FO volumes grew by 41% and 2% respectively.
In order to limit the spread of COVID-19, the lockdown was extended by the government for the entire month of April and despite that, the demand for petroleum products increased by 3% on a month-on-month basis due to a surge in sales of HSD on account of higher demand from the agriculture sector, given the beginning of wheat harvesting season and closure of Iran border resulting in lower availability of illegally dumped fuel.
During the first ten months of FY20, total White and Black Oil sales clocked-in at 13.35 million tons, declining by 13% due to dip in sales volumes of MS, HSD, and FO by 3%, 15%, and 31%, respectively. Motor Gasoline sales witnessed a meager decline of 3% to 5.99 million tons due to COVID-19.