Petroleum sales jumped up by 44% YoY during March 21

Total Petroleum and Lubricant sales clocked-in at 1.49mn tons in Mar’21, depicting a gigantic growth of 44% YoY (ex- FO growth of 32% YoY and 4% MoM) and 6% MoM due to extra working days compared to February and low base of Mar’20 given the incumbent government enforced a lockdown last year resulting in a slowdown in sales volumes.

The growth in sales volumes is primarily attributable to i) Economic growth driving retail fuel sales, ii) Surge in trade activity (exports and imports) and better agricultural yields resulting in higher sales of HSD, iii) double digit growth in automobile offtake, iv) preference to private transport over public transport to reduce chances of contracting Covid-19, and v) strict surveillance on borders and various parts of country in order to control supply of illegal or dumped fuel from Iran.

During 9MFY21, sales of total petroleum products increased by 15% YoY to 14.15mn tons vs. 12.27mn tons in 9MFY20. Dissection of data revealed that major contribution to growth came from HSD and FO with offtake undergoing a jump to 5.38mn tons and 2.30mn tons, up by 17% and 43% YoY against 4.60mn tons and 1.61mn tons in SPLY.

Courtesy – AHL Research


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