LAHORE - Oil consumption in the country stood at 1.46 million tons in January 2012 versus 1.64 million tons in January 2011, showing a decline of 11 percent on annual basis. Experts said that the major reason for the decline in consumption was the fall in sale of Furnace Oil, which is down by 15 percent YoY.  Moreover, Jet fuel sale is also down by 54%YoY owing to the Pakistan government halting supplies to NATO forces in Afghanistan and withdrawing duty exemptions on oil exports to Afghanistan.

However, Motor Gasoline demand witnessed an increase of 25% YoY because of enhanced CNG loadshedding in the country, despite a substantial increase of 23% YoY in product price.

Cumulatively in 7MFY12, oil demand reached 11.3m tons versus 11.4mntons in the corresponding period last year, a fall of 0.1% YoY.

Pakistan State Oil’s overall sales are down 8% YoY in Jan 2012. While High Speed Diesel (HSD) volumes increased by 1% YoY, FO sales went down by 16 %YoY. MOGAS sales witnessed a robust growth of 31% YoY. In 7MFY12, PSO sales reached 7.3mn tons (down 0.2%) with a market share of 64.2%. Attock Petroleum’s sales remained flat at 127k tons vs the decline in the overall industry. MOGAS and HSD sales went up by 20%YoY and 35%YoY, respectively while FO sales declined by 13%YoY. In 7MFY12, APL witnessed an impressive growth of 27%YoY to 932k tons, with a market share of 8.2%.