Oil sales in Pakistan declined by 13% to 9.07 million tonnes during the first seven months (July-Jan) FY2023-24, as compared to 10.47 million tonnes in the corresponding period of the last fiscal year.
Industry data revealed that lower demand for furnace oil and transport fuels contributed to this downturn.
The drop in petroleum product sales was predominantly influenced by a 53% decline in furnace oil sales, attributed to reduced demand from power plants for electricity generation.
Data indicated a 7% decrease in petrol sales to 4.18 million tons in July-Jan of the current fiscal year, compared to 4.48 million tonnes in the same period last year.
Similarly, high-speed diesel (HSD) sales also declined 7% to 3.67 million tonnes compared to 3.95 million tonnes in the corresponding months of the previous financial year.
In January, petroleum product sales saw a negative growth of 4%, settling at 1.38 million tonnes. However, furnace oil sales marked a 28% year-on-year growth in January, rebounding from negative trends observed earlier in the fiscal year.
Fuel oil sales witnessed a 132% month-on-month increase in January, driven by power plants lifting the black oil for electricity generation.
The closure of canals during the month resulted in lower hydel power generation, prompting increased demand for fuel oil in the domestic market.
Refineries reported a surge in fuel oil sales, with some halting exports due to heightened domestic demand.
Pakistan State Oil (PSO) experienced a 16% decline in sales for the first seven months, while monthly sales grew by 10%.
Attock Petroleum saw a 4% decrease in sales but recorded a 19% month-on-month growth. Shell’s sales were down 19% in the initial seven months but showed an 8% increase month-on-month.