The sales of petroleum products have posted a growth of 9 percent during the first seven months of the current fiscal year mainly due to increasing economic activities and trade.
The sales of oil market companies (OMCs) increased to 11,269,000 tons during July–January of 2020-21 as compared to 10,309,000 tons in the corresponding period of the last fiscal year, showing an increase of 9 percent.
Analysts at Taurus Securities attributed the increase in sales of petroleum products to increasing economic activity and trade compared to last year as well as the government’s efforts at reducing sale of HSD in the black market.
The sale of furnace oil posted a 36 percent growth to 1,915,000 tons during the first seven months of the current fiscal year as compared with 1,413,000 tons in the corresponding period of the last fiscal year.
The analysts attributed the significant increase to the shortage for LNG and demand for furnace oil by the power sector. They said that on the contrary, POL sales registered a decline of 5 percent Month on Month (MoM). The demand for high speed diesel (HSD) and motor spirit wavered on a MoM basis, down 13 percent and 5 percent, respectively, as economic and construction activity decelerated during winters.
The sales of Pakistan State Oil (PSO) for the month posted a drop of 4 percent wherein Year on Year (YoY) sales increased by 12 percent. Attock Petroleum Limited’s sales increased 5 percent MoM mainly due to growth in FO sales by 38 percent YoY. TLTP
Earlier in January, Pakistan’s oil production fell 6 percent year-on-year (YoY) to 76,331 barrels of oil per day during the second quarter (Oct-Dec, 2020) of the current fiscal year (FY2020-21). The drop has been attributed to the decline in production at Tal block fields, Mardankhel and Makori Deep, by 27pc and 31pc, respectively.
According to data released by the Pakistan Petroleum Information Service (PPIS), oil production from Chanda, Maramzai, and Makori East increased in the range of 5-46pc YoY. Chanda’s production increased due to induction of Chanda-5 well, whereas production from Nashpa increased 7pc QoQ as the field was on an annual turnaround in the last quarter (September 3-9, 2020).
On the other hand, Pakistan’s gas production declined by 4pc YoY to 3,409 mmcfd in 2QFY21, as flows from KPD, Kandhkot and Qadirpur fell in the range of 6-18pc.
Kandkhkot field’s production declined due to lesser offtake from Gencos. Mari field filled the Kandhkot fields flows as depicted from a 12 percent YoY increase in its production.—TLTP