KARACHI: Total oil sales soared by 21 per cent to 2.2 million tonnes in August on the back of strong growth in demand for furnace oil.

Oil sales had remained flat during the same period last year.

Furnace oil sales in August surged by 29pc year-on-year to 975,000 tonnes driven by increased economic activity and higher demand by the power generation sector.

As per the latest numbers issued by the National Electric Power Regulatory Authority (Nepra), power generation went up 12pc year-on-year in July, which was driven by furnace oil-based power plants.

Umair Naseer of Topline Securities said motor gasoline and high-speed diesel (HSD) sales remained strong last month.

They increased by 15pc and 16pc, respectively, due to improving car sales, lower oil prices and improved macros.

Sales of Hascol Petroleum grew by 45pc to 155,000 tonnes, taking its market share to 7pc from 6pc in the same period last year, he said.

Sales of Pakistan State Oil (PSO) and Attock Petroleum (APL) went up by 21pc and 22pc, respectively.

PSO lost some market share in retail fuel products, including motor gasoline and HSD, as their sales remained flat.

However, the increase in furnace oil sales of PSO supported growth in overall sales for the company, Mr Naseer said.

Growth in Shell Pakistan’s sales remained flat, as its HSD’s revenues fell by 6pc during August.

Improving macros, growing car sales and higher power generation are likely to drive sales of oil marketing companies higher going forward, he added. “Linkage of margins on retail products with CPI inflation also bodes well for the sector,” he said.

Published in Dawn, September 8th, 2016