Oil sales decreased 26%

Karachi: The first month of FY23 began with a 26% YoY fall in oil sales to 1.442 million tonnes, the lowest level since February 2021.

In July 2021 and June 2022, oil sales were 1.93 million and 1.93 million tonnes, respectively. The decline in sales of furnace oil (FO), high-speed diesel (HSD), and gasoline by 5 percent, 38 percent, and 27 percent, respectively, to 350,000 tonnes, 444,000 tonnes, and 594,000 tonnes in July compared to 367,000 tonnes, 721,000 tonnes, and 808,000 tonnes in July 2021 was the primary cause of the decline in the country’s overall oil sales.

Saad Ziker of Top Line Securities stated that dropped oil sales were caused by Eidul Azha vacations in the first part of July, when inter-provincial transportation activity decreased, resulting in low HSD sales and the rainy season across the nation reduced road traffic.

Moreover, he claimed that the 26 percent and 41 percent hikes in gasoline and diesel prices since June 2, 2022, led to a decrease in demand for petroleum goods and an increase in public transportation and carpooling.

Due to low agricultural growth, an anticipated reduction in auto sales, and an increase in fuel prices, he forecasted that oil sales would shrink by 15-20% YoY in FY23.