Uneven surge in the prices of petroleum products in last few months has not only bred the fresh wave of hyperinflation in the country but also eroded sale volumes. The demand of petrol and diesel is marking a new low every month, thanks to Iranian smuggled oil, lower power generation purely based on furnace oil and again humongous increase in oil prices.
In a recent update, local media has revealed that the petroleum sales decreased to the lowest in 44 months. Economic analyst Abdul Rehman in his tweet stated that diesel sales witnessed a severe downtrend since Covid lockdown.
Moreover, as per the experts, economic slowdown and a decrease in automobile sales also played a role in the reduced demand for petroleum in September. Meanwhile, the recent decrease in petrol and diesel prices, coupled with enhanced border security, would likely lead to an improvement in oil sales next month.
What Sales Charts Translates?
In September, Pakistan witnessed a 31% year-on-year (YoY) and a 25% month-on-month (MoM) decrease in monthly sales, recording 1.06 million tons. Sales of high-speed diesel (HSD) hit their lowest point since the Covid lockdown, totaling 394,000 tons in September 2023, reflecting a 24% YoY and a 28% MoM decline due to rising prices.
The cost of HSD surged by 12%, climbing from Rs293 per litre in August 2023 to Rs. 330 in September 2023. Petrol sales experienced an 18% YoY and a 23% MoM drop, reaching 518,000 tons in September 2023, the lowest figure since March 2020. The decrease was attributed to a significant increase in petrol prices, which rose by 14%, reaching Rs331 from Rs290 per litre in August.
Furthermore, Furnace oil sales plummeted by 72% YoY and 28% MoM to 84,000 tons due to reduced demand for oil-based power generation.
In the first quarter of FY24, sales of petroleum products saw a YoY decline of 16%, amounting to 3.77 million tons compared to the 4.49 million tons recorded in the same period last year.
