July 2, 2019 (MLN): Oil Marketing Companies sold nearly 1,354 thousand tons of petroleum products during the month of June-2019, registering a decline of 19% as compared to May-2019, where the total sales stood at 1,678 thousand tons.
On a yearly basis, this figure was down by around 29% against sales of 1,903 thousand tons in June-2018.
Numerous research notes have attributed this drop in sales to an increase in prices of petroleum products during the month, rupee devaluation, as well as lower demand for furnace oil on account of shift in energy mix used for power generation.
In line with the data released by Oil Companies Advisory Council (OCAC), Furnace oil sales declined by 57% YoY to 278 thousand tons, primarily on the back of increased inclination towards cheaper fuels.
Similarly, the sale of HSD plunged by 24% YoY whereas MS witnessed a decline of 8% YoY, signifying slackening economic activity.
The highest month-on-month decline in sales was borne by HSD, as it went down by 37%. This was followed by MS and FO, as the sales of both the products fell by nearly 6%.