Sales of POL products drop 14pc in August

KARACHI: Sales of petroleum products dropped by 14 per cent in August on a year-on-year basis, primarily due to decreased sales of high-speed diesel (HSD) and furnace oil (FO).

In August, petroleum product sales fell to 1.22 million tonnes (Mt) from 1.41 Mt in August of the previous fiscal year, according to data released on Monday. On a month-to-month basis, there was a 2.0 per cent increase in sales from July to August this fiscal year.

Over the first two months of this financial year, petroleum product sales saw a significant decline of 12 per cent, totalling 2.41 Mt compared to 2.76 Mt during the same period last fiscal year.

Industry experts attribute this decline to persistent smuggling of diesel, which has continued despite government measures and announcements., The reduced use of furnace oil for power generation has also contributed to the decrease in petroleum product sales.

The data revealed a 7.0 per cent drop in petrol sales in August compared to the same month last year. In the first two months of this fiscal year, petrol sales decreased by 8.0 per cent compared to the corresponding period of the previous fiscal year.

Sales of HSD fell by 17 per cent in August compared to the same month last year and declined by 12 per cent during July-August of this fiscal year compared to the same months of the previous year.

Furnace oil sales plummeted by 45 per cent in August compared to the previous fiscal year, with a sharp 46 per cent decrease in sales during the first two months of this fiscal year.Breakdowns of petroleum product sales by oil marketing companies show that Pakistan State Oil (PSO) experienced a 27 per cent drop in August and a 23 per cent decrease during July-August of this fiscal year compared to the same periods last year.

Attock Petroleum reported a 24 per cent decline in August and a 23 per cent drop over the first two months of this fiscal year. Shell Pakistan’s sales fell by 6.0 per cent in August and 7.0 per cent in the first two months of this fiscal year.Hascol, however, reported an 18 per cent increase in sales in August and a 2.0 per cent rise over the first two months of this fiscal year.