Pakistan’s total petroleum sales for August 2023 totaled 1.41 million tonnes, representing an 8% year-on-year (YoY) decrease.
Total Petroleum Sales
Analysts at Arif Habib Limited ascribed the drop to a huge 64 percent YoY drop in furnace oil (FO) sales.
Which was driven by a reduction in reliance on FO-based power generation following the installation of new local coal-fired power plants.
On the bright side, petrol and High Speed Diesel (HSD) sales increased by 5% and 11% year on year in August 2023, respectively.
This increase can be due to the lack of heavy rainfall in comparison to the same period the previous year.
Sales Industry Increased by 4%
The petroleum sales industry increased by 4% month on month (MoM) in August 2023.
This increase can be attributable to the monthly fortnightly pricing pattern.
Petrol sales increased by 2% year on year to 0.67 million tonnes, while HSD offtake jumped by 11% year on year to 0.55 million tonnes.
However, FO sales fell 18% year on year to 0.12 million tonnes, owing mostly to the previously indicated decrease in FO-based power generation.
Total petroleum product sales fell by 7% year on year in the first two months of fiscal year 2023-24, totaling 2.76 million tonnes.
A breakdown of product data shows that sales volumes of fuel and HSD have increased, while FO offtake has decreased significantly.
HSD and FO sales
Petrol, HSD, and FO sales were 1.33 million tonnes, 1.04 million tonnes, and 0.26 million tonnes, respectively, in the first two months of the fiscal year.
These numbers show a trend away from furnace oil in favour of cleaner and more efficient energy sources, reflecting the country’s attempts to diversify its energy mix and reduce environmental impact.
This trend is likely to continue as Pakistan strives to modernise its energy infrastructure and satisfy rising electricity demands in a sustainable manner.
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