Oil demand decline 26% in July due to high prices

 Oil sales down nearly 35% in last two months

According to the data released by the Oil Companies Advisory Council (OCAC) on Monday showed that oil sales declines in July. It is good news for the federal government which is struggling to contain the rising import bill. Oil is one of the biggest contributors to the imports. Government is hoping to save billions of dollars as the result of decline in oil demand. The decline in demand is also the sign of slowdown in the economy.  

 The oil demand in Pakistan decline 26percent in July. The oil sales witnessed massive fall in last two months. The oil sales fall nearly 35% in June and July. The decline in oil sales is the result of two factors, the high oil prices and slowdown in the economy.

Total petroleum and lubricant sales clocked in at 1.44 million tons in July 2022, a decrease of 26% on a year-on-year and month-on-month basis — the lowest sales since February 2021, Topline Securities reported.

Data compiled by Ismail Securities noted that high-speed diesel sales in the month of July were the lowest in the last 18 years while petrol sales recorded the lowest monthly sales in July over the last six years period.

It should be noted that petrol is mostly used by two, three and four-wheeler vehicles, while diesel is mostly consumed by the industrial and agriculture sectors.

Oil sales were down close to 35% in last two months.  It falls from 2.2 million tons in May to 1.4 million tons in July.

                                                                          insight247.news business desk

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