KARACHI – Volume of Pakistan State Oil (PSO) fell by an annual 10 percent during the first half of the financial year 2011, though oil consumption rose to fresh highs of 20 million tonnes in 2010. However, sales of Attock Petroleum Limited and Shell improved by an annual 14 percent and 22 percent respectively, spurred by an addition in clientele -Nishat power plants. High demand in December, i.e. a comparative 11 percent monthly surge, helped oil consumption increase by 0.5 percent in comparison to 2009. However, demand contracted by three percent in the first half of 2011 as a result of the catastrophic floods in July and August.
Volumes are expected to rise during the second half of 2011 led by recovery in furnace oil sales, said Ali Zafar at JS. He added that volumes for FY11 should clock 20.4 million tonnes, at par with FY10’s volumes. Oil sales ramped up by an annual and monthly 11 percent in December and reached 1.7 million tonnes. Growth was largely driven by recovery in furnace oil and high speed diesel sales, which underwent an annual improvement of six percent and 13 percent, respectively. Demand for Motor Gasoline sustained its rising trend due to gas load-shedding at CNG pumps, which went up by an annual 32 percent, while sales of Jet fuel (JP), Superior Kerosene Oil (KSO) and Light Diesel Oil (LDO) jumped up during the month. As a result, oil consumption during 2010 stood at a new high of 20 million tonnes, up by 0.5 percent.
Despite the country’s worst ever floods during July and August, consumption during the first half of 2011 went down by a meager three percent. High speed diesel and furnace oil volumes, due to hampered agricultural/business activities and inundation of major power plants were massively affected by floods, as 92 percent of FO is used for power generation.
Overall sales of PSO, possessing the largest share in these segments, slumped by an annual 10 percent. PSO’s share stood at 65 percent compared to APL’s six percent and Shell’s 15 percent during the period.
The anticipation that oil consumption would recover in the second half of 2011 post the floods, the sector volumes are likely to reach 20.4 million tonnes during FY11, which would be one percent higher from last year, he added.
