KARACHI: The country’s overall oil sales clocked in at 1.39 million tonnes in May, the highest in nine months, showing a jump of 7 per cent year-on-year and 26pc month-on-month, led by an annual increase of 18pc in diesel sales.

However, oil sales during the first 11 months (July-May) of the current fiscal year remained at 13.83m tonnes, down 9pc from the same period a year ago.

Amid serious concerns by refinery operators and oil marketing companies (OMCs) over a negative impact on their sales due to the rising influx of smuggled Iranian oil products, diesel sales rose significantly by 18pc to 643,000 tonnes due to harvesting season and a drop in prices by Rs16.3 per litre in May.

Myesha Sohail of Topline Securities believed that a “crackdown on smuggling of petroleum products has also resulted in somewhat recovery of diesel sales as per channel checks”.

Remain 9pc lower at 13.8m tonnes in July-May

During May, petrol sales were up 1pc year-on-year and 14pc month-on-month to 607,000 tonnes, taking the July-May sales to 6.4m tonnes, down 5pc from last year.

Sohail said petrol prices also dropped Rs20.84 per litre in May. Furnace oil (FO) sales in May fell 29pc year-on-year to 69,000 tonnes due to lower power generation from FO-based power plants.

She said the government had achieved the petroleum development levy (PDL) revenue collection target. The government set a PDL target of Rs869 billion for the ongoing fiscal year, which had been met in July-May, crossing Rs907bn.

She said the government could realise Rs990bn to Rs1 trillion for the entire fiscal year with the current average monthly collection of Rs80-85bn.

Published in Dawn, June 5th, 2024