LAHORE: Oil sales in the country are likely to increase by 2 per cent Year-on-Year (YoY) in September as Furnace Oil (FO) demand improved by 62pc YoY.
The pickup in FO volumes is largely attributable to low FO prices resulting in higher FO-based power generation and overall pick-up in economic activity following improvements in Covid-19 situation.
However, oil sales are expected to decline by 2pc Month-on Month (MoM), as it took some time for the water-logged areas from heavy rains to be cleared before transportation and agricultural activities could continue.
Hence, sales of High-Speed Diesel (HSD) and Motor Spirit (MS) are likely to decline by 9pc MoM and 7pc MoM, respectively during the month.
In 1QFY21, oil sales are likely to grow by 8pc YoY where HSD and FO volumes have increased by 7pc YoY and 30pc YoY, respectively.
Similarly, HASCOL sales for September are likely to increase the most by 64pc YoY (due to 126pc increase in MS sales), followed by 4pc YoY rise in APL volumes (due to 60pc YoY higher FO sales).
On the market share front, PSO’s market share is expected to decline from 43pc last month to 41pc in MS, while HASCOL has made major inroads with an increase from 7pc to 11pc.
