A recent report by Arif Habib Limited summarized oil sales for the month of February. The stats show 1.4 million tons of petroleum product sales in Pakistan. Compared to the 1.11 million tons of petrol sales in February 2020, year-on-year sales growth is 26%. On the other hand, sales comparison of Feb’21 and Jan‘21 oil sales shows a month-on-month sales decline of 8%.
As per the analysts at Arif Habib Limited, the factors behind the 26% increase in YoY petroleum sales are:
- Massive growth in the sales of two-wheeler, three-wheeler, and four-wheeler vehicles
- Economic recovery after the COVID-19
- Production of high-speed diesel due to better agricultural yields
- Cheaper petrol and diesel prices (116.60 rupees in Feb’20 vs 111.90 in Feb’21)
- Absence of CNG at fuel stations
- Restriction on illegal or dumped fuel imports from Iran
Out of all the petroleum products, High-Speed Diesel (HSD) and Fuel Oil (FO) recorded the highest sales. 4.84 million tons of HSD sold in February 2021, 15% more sales compared to 4.21 million tons in February 2020. Similarly, 2.09 million tons of FO sold in Feb’21, 36% YoY sales growth compared to 1.54 million tons in Feb’20.
Company-Wise Petrol Sales Analysis
The report also summarized the company-wise YoY sales breakdown. The best oil seller company was PSO, with 58% YoY sales growth. Shell became the second-best with a 33% YoY sales jump in February 2021. On the other hand, APL and HASCOL registered 16% and 45% YoY sales decline, respectively.
If we compare the 11.2 million tons of oil sales during 8 months of Fiscal Year 2021 (July 2020 – February 2021) with the12.6 million tons of sales during 8 months of Fiscal Year 2020 (July 2019 – February 2020), we see an increase of 13%.
Year-on-Year sales growth is good news for Pakistan. The country’s economy is coming back to life after the COVID-19 hiccups, so is the local automotive industry.