The petroleum industry of Pakistan had a gloomy first half of FY24, with sales of petroleum products falling by 15% to 7.686 million tonnes from nine million tonnes in the same period the previous fiscal year.
Despite a drop in price to Rs267.34 from Rs331.38 per liter in September 2023, petrol sales saw a 7% decline to 3.57 million tons during the July-December period from 3.83 million tonnes in the same period of FY23.
Sales of furnace oil (FO) decreased by 61% to 0.56 million tonnes from 1.45 million tonnes in 1HFY23. Although High-speed diesel (HSD) prices had also declined to Rs276.21 from Rs329.18 in September 2023, diesel sales still fell by 6% to 3.16 million tonnes from 3.36 million tonnes in 1HFY23.
The slow off-take of diesel and petrol was reportedly caused by a 52% overall reduction in sales of automobiles, LCVs, pickup trucks, and SUVs, which fell to 33,638 units during July-November FY24 from 67,107 units in the same period of last fiscal year. This was followed by a 12% and 3% decline in demand for two- and three-wheelers, respectively. Sales of trucks and buses had similarly decreased by 48% and 45% in 5MFY24.
According to market observers, despite a decline in the price of gasoline and diesel, consumers’ purchasing behavior is reflected in the slowdown in demand for these fuels. This is because they are already concerned about rising electricity costs and excessive food inflation, which limits their ability to buy fuels as needed.
Source: Dawn
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