Yet another positive indicator for the economic revival of Pakistan

Yet another positive indicator for the economic revival of Pakistan

Pakistan’s total oil sales rose by 11 percent to 11.27 million tons during the first seven months of the fiscal year 2020-2021 (FY21) as compared to 10.14 million tons in the corresponding period.

The increase is being said to have happened due to a massive jump in demand for furnace oil (FO), high-speed diesel (HSD), and petrol.

FO sales shot up by 37 percent to 1.916 million tons from July 2020 to January 2021, while HSD sales went up by 12 percent to 4.29 million tons and petrol sales going up by 6 percent to 4.75 million tons.

According to an analyst, the rising furnace oil sale was due to high demand from the power sector as there was a gas shortage during winter. The analyst also mentioned an overall pick-up in economic activity as another reason for the higher oil demand.

Petrol sales have remained robust due to the increasing sales of cars, LCVs, and two/three wheelers during the first half of the current fiscal year. ------------------------------

The prolonged shutdown of CNG pumps in Sindh and in upcountry under a gas load-shedding program to provide uninterrupted gas to the household consumers also led cars and CNG rickshaws to move towards petrol.

With the launch of various Chinese and Korean cars, SUVs, jeeps, etc., seen in the last two months, coupled with significant imports of vehicles by the new entrants in the first half of FY21, it may be expected that petrol sales may further go up in coming months.

via Dawn link