Fuel sales rise to 14.8 million tonnes
Overall sales may grow by 5 per cent to 23.2 million tonnes in FY16
Dunya News Report (Jibran Dost)
Fuel sales in Pakistan grew by five per cent to 14.8 million tonnes in the first eight months of Fiscal Year 2016, in addition to the strong growth in petrol and high speed diesel (HSD).
On the other hand, in February 2016, oil sales remained level at 1.8 tonnes on a year-on-year basis and decreased down to 6 per cent on a month-on-month basis.
Petrol and High Speed Diesel (HSD) sales were up 24 per cent and 3 per cent to 3.6 million tonnes and 4.8 million tonnes respectively. Furnace oil (FO) sales plunged by 4 per cent to 5.6 million tonnes due to the availability of liquefied natural gas (LNG) to major plants.
At the same time, the cut in High Speed Diesel (HSD) and petrol prices by 6-12 per cent in March 2016 would further push oil sales and overall sales may grow by 5 per cent to 23.2 million tonnes in Fiscal Year 2016 as compared to the growth of 4 per cent during the previous year, said a senior research analyst at Topline Securities Umair Naseer.
Earlier this month, Prime Minister Nawaz Sharif announced major reduction in prices of petroleum products by up to 12 per cent for March. A cut of Rs 8.48 per litre in petrol, Rs 4.67 in high speed diesel, Rs 1.97 in light diesel and Rs 2.98 in high octane came in effect on Monday midnight.
According to an official statement by the Prime Minister’s office, Nawaz Sharif expressed “It is our duty to serve the masses wholeheartedly and with full sincerity.”
The prime minister had accepted the proposal of the Oil and Gas Regulatory Authority (OGRA) to reduce the prices of petrol, high speed diesel (HSD), high octane blending component (HOBC) and light diesel oil (LDO).
Based on PSO purchases from the international market, a reduction of Rs 8.48 (11.90 per cent) in the price of petrol to Rs 62.77 per litre from Rs 71.25, Rs 4.67 (6.16 per cent) in the price of HSD to Rs 71.12 per litre from Rs 75.79, Rs 1.97 (4.93 per cent) in the price of LDO to Rs 37.97 per litre from Rs 39.94 was approved. Whereas the price of HOBC was reduced by Rs 2.98 (3.94 per cent) to Rs 72.62 per litre from Rs 75.60
In contrast, the government, at present, is collecting as much as Rs 25 per litre taxes on petrol. Rs 14.58 fixed sales tax and Rs 10 as petroleum development levy. Moreover, it is collecting about Rs 38 per litre taxes on HSD, including a fixed sales tax of Rs 29.57
