Oil consumption dips during FY11

Catastrophic floods and subdued trade activity adversely affected the oil sales. Subsequently, sales of Furnace oil and HSD (High Speed Diesel) that cumulatively contribute 85% to oil consumption, declined by 2.2% and 7.3%, respectively. Exception to the declining trend was sales of Motor Spirit, which surged by 18% in FY11 on account of prevalent gas curtailment to CNG sector.Company wise data show that, on account of the aforementioned factors PSO sales decline by 10.6%, while picking up lost ground Shell Pakistan and Attock Petroleum sales increased by 10% and 22%, respectively. In FY12, with economic activity picking up and gas price rationalization under process, we expect oil sales to resume its upward trend in FY12.