During July 2017, sales of petroleum products witnessed a surge of around 9 percent month-on-month and rose to 2.31 million tons. The figure was released by the data made public by the Oil Companies Advisory Council. This shows that petroleum products have marked a yearly growth of almost 8 percent. The main reason for this impressive growth is the rise in transport activities, especially after Eid holidays.
A deeper analysis of company-wise data shows that Hascol, a rising oil marketing company, posted a petrol volume rise of 107 percent and diesel volume of 161 percent. On this basis, Hascol managed to grow its market share by 11 percent more.
Research House Shajar Capital has released a report that underlines the product-wise data of petroleum industry. According to the data, the overall petrol sales rose to 617,000 tons from 566,000 tons in June, supplementing the petrol demand that went as high as 14 percent. In the same manner, while posting a growth of 18 percent, diesel demand went up to 755,000 tons.
However, the recent surge in demand of petroleum products couldn’t help PSO and Shell Pakistan to witness a strong decline. In fact, both the companies showed a significant decline; while on one hand, PSO lost the market share by 55 percent, and Shell Pakistan showed a monthly decline of 26.4 percent with yearly decline of 28.1 percent in sales volumes.
High Rise in Company’s Demand
Many experts believe that the country’s OMC sector is improving because of the auto and agriculture sectors. The high demand of furnace oil by the agriculture sector has resulted in the massive growth of OMC sector.
Recently, around four companies have become successful in seeking the government’s permission for setting up new manufacturing plants. This will result in an increase in the production of automobiles, which will simultaneously affect the petroleum industry.
The auto industry shows positive signs for improvement since the rise in auto financing has enabled more people to buy vehicles. The auto loans in July increased by a whopping 34 percent.
As of now, the country has a 16:1000 vehicle-to-people ratio. This means that for every 1000 people, 16 vehicles are being consumed. The government has also introduced the Orange Cab scheme which will award around 50,000 vehicles to people who apply to the scheme. The other project in line is the Green Line project in Karachi that will see the inflow of a large number of buses, resulting in high demand of petroleum products.