Oil Consumption in Pakistan surged up by 11 % in November
Consumption of Oil is increased by 11% in November on a yearly basis with an impressive performance from all mainstream products. Petrol sales also increased by a significant 34% as gas load shedding have made many producers to
shift to the more expensive alternate petrol.
Furnace oil, the highest selling product, consumption also swelled by 11% as power plants switched their reliance on furnace oil instead of gas due it its scarcity. High speed diesel volumes recorded a massive growth of 13%.
The industrial sector and CNG stations of Punjab face gas suspension for three days a week in December due to the gas shortage. This caused the oil consumption to rise which reached 8.4 million tons in the first five months of
the current financial year, up 5% on a yearly basis.
Attock Petroleum (APL) continues to be the leader of the industry as the company recorded a growth of 59% in November while market leader Pakistan State Oil posted a growth of 15%.
In other news, Pakistan State Oil (PSO) has cancelled a tender to purchase jet fuel in January after the government closed supply routes to Nato troops in Afghanistan, two commendable sources said.
The company was seeking 25,000 tons of jet A-1 fuel for delivery in January through a spot tender that closed on December 5 and was valid until December 10. This has now been cancelled after the November 26 Nato air attack that
killed 24 Pakistani soldiers. Pakistan imports about 25,000 tons of jet fuel every month and about 90% of this transported to Afghanistan.
PSO last bought two 50,000 ton cargoes of jet fuel for November-December delivery from Vitol at a premium of $4.04 a barrel.
A source within the industry said, “For the jet fuel tender which was scrapped, Oman Trading International was understood to have the lowest bid of $4.16 a barrel above Middle East quotes on a delivered basis, while Sahara Energy
had the highest bid premium of $5.47 a barrel.”