KARACHI: Petrol and diesel sales during April 2016 remained strong, increasing by 12 per cent and 6pc on YoY basis to 0.5 million tonnes and 0.7m tonnes, respectively.
Furnace oil (FO) sales declined 24pc YoY to 0.6m tonnes in April. As a result, total oil sales of the country were down 5pc YoY to 2m tonnes.
In the tenth month of FY16, oil sales grew by 4pc to 18.8m tonnes led by petrol and HSD sales which were up 25pc and 4pc respectively. FO sales plunged by 6pc to 7m tonnes in the stated period.
Umair Naseer of Top Line Securities said sales of petrol and HSD remained strong due to sharp fall in petroleum product prices thus increasing consumer purchasing power.
Petrol and HSD prices had both come down by 13pc YoY in Apr 2016 to Rs64 per litre and Rs73 per litre. FO sales came under pressure due to availability of LNG to power plants and industrial sector.
OMCs are likely to benefit from rising sales volume of petrol and HSD as margins on these items are fixed.
Courtesy : Dawn News