Refinery sales up in November

KARACHI: The refinery sector registered a modest recovery with increase of 5.9 percent sales in first five months of the current financial year 2011-12. The sales firmly up by 9.6 percent in November compared with previous month of October.

Refiners’ products sales’ growth happened on the revival of petrol and diesel sales, which witnessed growth of 35 percent month to month (MoM) and 30 percent MoM respectively after last month’s slump.

On the other hand, the supplies of both products were still lower than the target, with shortfall in the vicinity of 2-4 percent. With prolonged CNG load-shedding, the demand for petrol has been on the rise, where average demand during Dec-Feb 12 is also anticipated to be higher by 6 percent compared to average petrol sales during July-November 11 period. Therefore, refinery throughput is expected to remain tilted towards petrol under the same period.

On the other hand, furnace oil continued to fall with November 11 showing lowest refinery sales so far during the year. The overall sales were down by 23 percent MoM and 7.6 percent in 5MFY12 with greatest declines being posted by National Refinery Limited and Pakistan Refinery Limited.

The supplies are currently being affected by the notorious inter-corporate debt where total furnace oil sales by the Oil Marketing Companies remained short by a massive 30 percent in November 11 against the estimated demand.

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