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Friday March 01, 2024

Oil sales fall 13pc in July-Jan, furnace oil bucks trend

The oil sales 10.47 million tonnes in the corresponding period of the last financial year

February 02, 2024
This picture taken on January 12, 2024, shows onshore oil pumps in Tutong district in Brunei. — AFP
This picture taken on January 12, 2024, shows onshore oil pumps in Tutong district in Brunei. — AFP

KARACHI: Oil sales fell 13 percent to 9.07 million tonnes in the first seven months of the 2023/24 fiscal year, as lower demand for furnace oil and transport fuels weighed on the sector, industry data showed on Thursday.

The oil sales 10.47 million tonnes in the corresponding period of the last financial year.

The substantial decrease in the sales of petroleum products was caused by a massive decline in the sales of furnace oil, which went down by 53 percent in the period under review, after it was not lifted by power plants for electricity generation.

According to data, the sale of petrol dipped by seven percent to 4.18 million tons in July - January of this financial year compared to 4.48 million tonnes in the same months of the last financial year.

The sale of high speed diesel (HSD) also went down by seven percent to 3.67 million tonnes in the period under review against 3.95 million tonnes in the same months of the last financial year.

In the month of January, the sale of petroleum products posted a negative growth of four percent to settle at 1.38 million tonnes, whereas the sale of products in January improved by twelve percent.

The sale of petroleum products recorded a negative growth of five percent in the month of January, whereas the sale of HSD declined by twelve percent in January.

The sale of furnace oil posted a major growth of 28 percent year-on-year in the month of January. The sale of furnace oil picked up after remaining on the negative side for most parts of this fiscal year.

The sale of fuel oil jumped sharply by 132 percent month-on-month after the country's power plants started lifting the black oil for power generation.

The month of January witnessed the closure of canals, which resulted in low generation of hydel power as well as a drop in electricity generation from gas.

'Refineries sold a high quantity of fuel oil and even stopped its export due to its increased demand in the domestic market, one of the top officials of a local refinery told The News.

The sales of Pakistan State Oil (PSO) plunged by 16 percent in the first seven months, whereas its sales grew by ten percent month-on-month.

The sales of Attack Petroleum were down by four percent in the first seven months and were up by 19 percent month-on-month.

The sales of Shell were down by 19 percent in the first seven months and registered an eight percent growth month-on-month.