Oil sales jumped 19pc in July-Sept KARACHI: Pakistan’s total oil sales rose 19 per cent year-on-year to 6.5 million tonnes during the three months to September due to increase in demand for furnace oil and petrol.
In September alone, 2.1m tonnes of oil were sold, which was 14pc higher compared to the same period of the last fiscal year. However, the September sales remained slightly lower than expectations of 2.3m tonnes, Umair Naseer of Top Line Securities said.
He anticipated oil sales to grow by 12pc to 26.2m tonnes in the current fiscal year.
Sales of furnace oil remained strong during the month, growing by 18pc year-on-year to 849,000 tonnes on the back of rising power generation from power plants running on the fuel.
Petrol and high-speed diesel (HSD) sales rose 16pc and 9pc to 577,000 tonnes and 627,000 tonnes in September, respectively, due to improving macros, rising car sales and low oil prices.
In the July-September quarter, furnace oil sales grew 25pc year-on-year to 2.75m tonnes while petrol sales soared to 1.63m tonnes, a rise of 21pc. Sales of HSD increased 10pc to 1.825m tonnes during the quarter.
Mr Naseer said Hascol Petroleum and Attock Petroleum outperformed the market reporting a growth of 87pc and 16pc, respectively. Pakistan State Oil (PSO) registered sales growth of 10pc in contrast to industry’s growth of 14pc in September, driven by lower HSD sales during the month. Furnace oil sales of PSO grew 23pc to 638,000 tonnes.
Dynamics for oil marketing companies remain favourable as improving macros, increasing car sales and higher power generation are likely to drive their sales. Linkage of margins on retail products with Consumer Price Index inflation also bodes well for the sector’s profitability, he said.