The oil sales in Pakistan have seen a huge jump of 57% in the month of April 2021. The country recorded sale of 1.67 million tons of oil in the said month, compared to 1.07 million tons in April 2020. The Month on Month (MoM) sales were increased by 13%, from 1.49 million tons in March 2021.
During the ten months of the current fiscal year, the overall oil sales were increased by 19% at 15.83 million tons, against 13.34 million tons in July-April 2020.
Petrol and Diesel Sales:
Coming to petrol, the country clocked 54% higher Year on Year (YoY) sales in April at 0.67 million tons than 0.44 million tons in April 2020. However, the sales saw a drop of 2% on MoM bases, as 0.69 million tons of petrol was sold in March 2021.
As per a report by Arif Habib Ltd, the petrol sales in 10 months of this Fiscal year (July 2020-April 2021) showed a jump of 12% to 6.73 million tons from 5.99 million tons in the same period previous year. Meanwhile, diesel sales recorded a 44% increase in YoY sales to 0.79 million tons in April 2021 against 0.55 million tons in April 2020.
Furnace Oil Sales:
Furnace Oil showed the most significant increase of 155% on a YoY basis to 0.18 million tons in April 2021 as compared to 0.07 million tons in April 2020. However, the furnace oil saw a decrease of 17% in sales on MoM bases.
Here is a brief chart, comparing YoY and MoM sales of oil products:
Reason?
A significant increase in sales of passenger cars, SUVs, pickups, two-wheelers and other vehicles have contributed the most to the higher demand for petrol. On the other hand, diesel sales increased due to improvement in import/export goods transportation after easing of COVID-19 restrictions. The harvest of the wheat crop has also played in higher demand for diesel.
As per topline securities, overall oil sales have also gone up due to increased usage in power generation by the private
