As per data from Oil Companies Advisory Committee (OCAC), fuel sales have been reported at 1.9 million tons during June 2018, having dropped by 22% compared to the last month and by 9% compared to the corresponding period of last year. The drop in sales comes as oil prices increase in the global market.
The largest decline in sales on a month on month basis was witnessed with respect to High Speed Diesel sales that declined by 34%. However, on a yearly basis, the decline is sales is only about 9%.
Furnace Oil is another major contributor to the deterioration of overall sales of energy fuel as sales of FO have dropped by 25% from last month and 24% from last year.
Sales of Motor Spirits declined by 4% from last month but have still increased by 9% compared to the last year.
Overall energy fuel sales during the fiscal year 2018 were reported at 24.25 million tons, having declined by 4% compared to the fiscal year 2017, primarily due to the subdued sales of Furnace Oil.
“Decline in sales can be attributed to lower demand from the power sector as LNG based power generation took top slot on the priority list”, says Faizan Ahmed of JS Global Capital Ltd.
