Oil consumption in the country stood at 1.46mn tons in Jan 2012 versus 1.64mn tonnes in Jan 2011, a decline of 11per cent YoY. The major reason for the decline in consumption was the fall in sale of Furnace Oil (FO), which is down 15per cent YoY amid the circular debt.
Moreover, Jet fuel sale is also down by 54per cent YoY owing to the Pakistan government halting supplies to NATO forces in Afghanistan and withdrawing duty exemptions on oil exports to Afghanistan. However, Motor Gasoline demand witnessed an increase of 25 per cent YoY because of enhanced CNG load shedding in the country, despite a substantial increase of 23per cent YoY in product price. Cumulatively in 7MFY12, oil demand reached 11.3mn tons vs. 11.4mn tons in the corresponding period last year, a fall of 0.1per cent YoY. Pakistan State Oil’s overall sales are down eight per cent YoY in Jan 2012. While High Speed Diesel (HSD) volumes increased by one per cent YoY, FO sales went down by 16 per cent YoY. MOGAS sales witnessed a robust growth of 31per cent YoY. In 7MFY12, PSO sales reached 7.3mn tons (down 0.2per cent) with a market share of 64.2per cent. Attock Petroleum’s sales remained flat at 127k tons versus the decline in the overall industry. MOGAS and HSD sales went up by 20 per cent YoY and 35 per centYoY, respectively while FO sales declined by 13 per cent YoY. In 7MFY12, APL witnessed an impressive growth of 27 per cent YoY to 932k tonnes, with a market share of 8.2 per cent.
