November 29, 2022
Business

High prices reduce demand: Oil sales fall 26% and reach their lowest point after February 2021

High prices reduce demand: Oil sales fall 26% and reach their lowest point after February 2021

KARACHI: According to figures issued on Monday by the Oil Businesses Advisory Council (OCAC), the country saw a fall in the sales of the oil marketing companies during July, in keeping with the coalition government’s aim to lower oil import bills.

The lowest sales since February 2021, total petroleum and lubricant sales in July 2022 totaled 1.44 million tonnes, a reduction of 26% on an annual and monthly basis.

The month of July saw the lowest sales of high-speed diesel in the previous 18 years and the lowest monthly sales of gasoline in the previous six years. The decrease in the month’s usage of petroleum products was caused, among other things, by:

Price hikes for high-speed diesel and gasoline.
Ongoing, intense monsoon rains.
Increased domestic inflation.
A substantial decrease in economic activity.

It should be mentioned that although diesel is primarily used by the industrial and agricultural sectors, gasoline is primarily used by two-, three-, and four-wheeled vehicles.

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