KARACHI: Pakistan’s Oil Marketing Companies (OMC) off-take surged 26 per cent to 1.96 million tonnes during August 2021 because of higher high-speed diesel (HSD) and furnace oil (FO) off-take during the month, the official data revealed on Thursday.

Motor spirit (MS) sales surged 9 per cent to 1.5 million tonnes during the two months of FY22 (July-August) because of high vehicle sales and increased intercity transport.

Sequentially; however, motor spirit sales dipped 9 per cent on a monthly basis because of July 2021’s high base, resulting from increased travels, amid the extended Eid holidays.

The Pakistan State Oil (PSO) emerged as the market leader in the commodity with a share of 46 per cent during the fiscal year.

“Onwards, we project MS sales to remain elevated on [the] expectations of high vehicle sales and increased economic activity, particularly after schools reopened,” an analyst at KASB Securities said.

The high-speed diesel sales jumped 18 per cent in the two months of FY22 to 1.3 million tonnes because of the improved economic activity. Moreover, high-speed diesel sales increased 32 per cent in August 2021 because of August 2020’s low base, resulting from the pandemic-driven restrictions.

“Onwards, we foresee HSD sales to remain high, as [the] economic recovery takes precedence.”

The furnace oil sales surged 59 per cent to 873k tonnes in the two months because of domestic gas shortage and higher prices of the re-gasified liquefied natural gas (RLNG), incentivising the use of the furnace oil for generating electricity.

“For the remainder of CY21, we project FO sales to remain inflated, as RLNG prices reach record-high levels. In the long run; however, the commencement of new coal-based power projects and normalising LNG spot rates may slow down the commodity’s demand,” the KASB Securities analyst said.

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