Total Petroleum and Lubricant sales clocked-in at 1.96mn tons in Sep’21, depicting an increase of 29% YoY (ex- FO growth of 35% YoY) amid significant growth in retail fuel sales. The growth in sales volumes is primarily attributable to i) Surge in economic activity amid higher trade activity and growth in large scale manufacturing on account of rising demand from both local and foreign consumers, ii) Higher HSD demand from agriculture sector, iii) Robust growth in automobile sales numbers, iv) Rising tourism in Pakistan, v) Strict control on borders which reduced supply of smuggled fuel, and vi) Higher reliance on FO-based power plants.

During 1QFY22, sales of total petroleum products increased by 24% YoY to 5.86mn tons vs. 4.74mn tons in SPLY. Dissection of data revealed that double digit growth came from MS, HSD and FO with offtake undergoing a jump to 2.35mn tons, 2.09mn tons and 1.28mn tons (amid higher requirement from FO based power plants), up by 14%, 27% and 38% YoY against 2.06mn tons, 1.65mn tons and 0.92mn tons in SPLY, respectively.

Courtesy – AHL Research