Furnac­e oil sales declin­e by a hefty 44% year-on-year to 0.43 millio­n tonsKARACHI: Oil sales dropped 11.4% to 1.87 million tons in December 2017 after the government closed a number of furnace oil-fired power plants as cheaper LNG and coal-based plants replaced the conventional method of electricity production. “In December 2017, furnace oil sales declined by a hefty 44% year-on-year to 0.43 million tons after the shutdown of power plants,” Taurus Securities said on Wednesday. “As anticipated, furnace oil sales remained on a downward trajectory (down 13% year-on-year) as circular debt piled up to Rs441 billion, along with growing current account deficit, propelling the government to reduce reliance on expensive furnace oil-based power plants,” the brokerage house said. Despite its strong retail network, Pakistan State Oil (PSO) was not able to sustain its market share (down 129bps to 55.5%), due to decline in furnace oil sales. “In the upcoming months, we expect furnace oil (and high speed diesel sales volumes to slightly improve as hydel generation dips in winter and due to the on-going sugar crushing season.

Source: The Express Tribune January 04, 2018 05:15 UTC