Petroleum sales in Pakistan declined 19% in the first seven months of the current financial year, due to a sluggish economy and reduced demand for the products.
In January 2023, petroleum product sales decreased by nearly 20% compared to January of the previous financial year, totaling 1.44 million tonnes versus 1.80 million tonnes.
However, month-over-month, the sales of these products increased by 8% compared to December 2022.
Data shows that 10.47 million tonnes of petroleum products were sold during 7M FY23, compared to 12.91 million tonnes in the same period last year.
Petrol sales decreased by 15% to 4.48 million tonnes in the relevant period, compared to 5.26 million tonnes in the same period of the previous fiscal year. High-speed diesel (HSD) sales also showed a decline of 23%, totaling 3.95 million tonnes, compared to 5.10 million tonnes in the corresponding period of FY22.
PSO’s sales declined 18 percent in January 2023 as compared to January 2022. While Shell Pakistan (SHEL) sales decreased by 15 percent and Attock Petroleum sales declined by 13 percent YoY
According to the data, the sales of petroleum products by major oil marketing companies, such as PSO, APL, and Shell, decreased by 17%, 20%, and 21%, respectively, in the first seven months of the current fiscal year, compared to the same period of the previous year.
The news comes soon after Pakistan suffered yet another dip in petroleum sales during December last year. During the period, there was a 14% monthly decrease to around 1.34 million tons mainly due to a seasonal trend of slowdown.
Furnace oil sales saw a drop of 27% to 1.59 million tonnes during the period in question, compared to 2.16 million tonnes in the same period of the previous fiscal year.
Lower demand for furnace oil also brought about an overall slowdown in the economy.