KARACHI: Vigorous auto sales pushed petrol sales to an all-time high of 0.81 million tonnes in July 2021, up 12.5 percent year-on-year (YoY) and 4pc month-on-month (MOTHER).
On the whole, oil sector sales swelled by 16pc YoY to 1.94 million tonnes in July from 1.66 m tonnes in the exact same month last year.
High speed diesel (HSD) sales grew by 7pc to 0.72 m tonnes in July 2021 from 0.68 m tonnes in July 2020. Nonetheless, HSD sales fell by 7pc to 0.78 m tonnes in June 2021 when compared with July 2021 figure.
Furnace oil (FO) sales uploaded a whooping growth of 54pc to 0.37 m tonnes from 0.24 m tonnes in July 2020. On MOTHER basis, FO sales expanded by 8pc.
Head of Research Study at Pak Kuwait Investment Samiullah Tariq stated a massive drop in smuggling of Iranian petroleum either because of issues in Iran or strict boundary vigilance by the Pakistani federal government has actually improved demand of regional petrol.
Pointing out an additional reason for rising gas sales, he said a lot of people had chosen taking a trip to the northern locations in July. On FO sales growth, he said that LNG problems had actually kept the demand up for the fuel.
Head of Study at Arif Habib Limited (AHL) Tahir Abbas claimed one of the primary factors of flourishing gas sales in July was growing sales of autos followed by increasing taking a trip of people to north locations by road.
” Lots of FO-based power plants had resumed their operations in July 2021. Suspension of RLNG supply in the initial week of July likewise raised FO sales for power generation,” he added.
The automobile sales picture is most likely to end up being clearer after the release of July 2021 sales data by the Pakistan Automotive Manufactures Organization (PAMA) in the 2nd week of this month.
Meanwhile, Indus Electric Motor Business (IMC) Chief Executive Officer Ali Asghar Jamali said, “IMC has attained record breaking sale of 6,775 systems in July 2021– the greatest considering that its creation in 1993.”
As per PAMA data, auto sales had actually leapt by 56.7 pc in FY21 to 151,182 units from 96,455 systems in FY20. Cut in the price of cars and trucks as a result of reducing of taxes and also obligations by the federal government has actually likewise sustained added car demand adhered to by record high auto-financing of Rs308 billion as of June 2021 owing to low interest rates.
Skyrocketing two-wheelers sales have also been raising gasoline demand. According to numbers of Huge Range Production (LSM), total bike production in July-May FY21 rose by 41pc to 2.282 m systems from 1.623 m systems in the very same duration last financial.