Karachi, July 03, 2019 (PPI-OT): Oil and Gas Marketing Companies – Jun-19: Volumes contract by 29%YoY, while price hikes and economic slowdown hampered growth in FY19
Industry volumes for oil marketing companies for the month of Jun-19 witnessed a decline of 29%YoY to 1.36mn ton bringing industry volumes for FY19 to 18.32mn ton down by 25%YoY. Furnace Oil (FO)/ High Speed Diesel (HSD)/ Motor Spirit (MS) sales registered drop of 57%/24%/8%YoY during Jun-19.
MS sales dropped by 8%YoY in Jun-19, while on sequential basis, volumes are down by 6%MoM to 0.57mn ton likely on the back of lower demand due to price hike. For FY19, MS volumes are up by +1%YoY to 7.37mn ton. HSD sales dropped down by 24%YoY to 0.45mn ton in Jun-19, while on monthly basis volumes are down by 37%MoM. This brings total FY19 sales at 7.21mn ton down by 20%YoY. FO volumes depicted a decline of 57%YoY to 0.28mn ton in Jun-19 as demand remained subdued owing to lower generation from FO based power plants which was also substituted by new low cost LNG/Coal plants operating at priority basis. On sequential basis, FO volumes are down by 5%MoM. As a result, total FO volumes are down by 58%YoY in FY19 to 3.02mn ton.