Pakistan’s petroleum sales witnessed a 25 percent increase on a month-on-month (MoM) basis and stood at 1.26 million tons in October 2023 compared to 1.01 million tons in September 2023.
According to Topline Securities, the Average Petrol price of October 2023 came down to Rs. 303/lit compared to Rs. 318/lit in September 2023. Similarly average Diesel prices came down to Rs. 311/lit in October 2023 from Rs. 321/lit in September 2023.
However, petroleum sales witnessed a decline of 24 percent on a year-over-year (YoY) basis and stood at 1.26 million tons in October 2023 compared to 1.66 million tons in the same period last year.
The decline can be attributed to several factors, including the increased prices of petroleum products, a general economic slowdown, and a reduction in consumption of furnace oil (FO) due to the reliance on new coal-based power plants, according to Arif Habib Ltd.
During the month, MS petrol sales witnessed a decrease of 15 percent YoY, reaching 0.58 million tons. HSD sales were worse with a decline of 21 percent YoY, while FO sales were the worst, falling 74 percent YoY to 0.14 million tons.
The company-wise analysis shows that Pakistan State Oil (PSO) sales declined by 26 percent YoY from 0.85 million tons to 0.63 million tons in October 2023. Under the government-run entity, MS sales witnessed a fall of 14 percent YoY, reaching 0.25 million tons. HSD sales decreased by 20 percent on a YoY basis, while FO sales collapsed by 95 percent YoY.
Sales under Attock Petroleum Ltd. (APL) registered a decline of 10 percent on a YoY basis in October on the back of decreased FO and MS sales by 53 percent and 1 percent, respectively.
Shell’s offtake declined by 29 percent YoY in October 2023 as the sales of HSD and MS dipped by 36 percent and 26 percent YoY, respectively. Compared to September 2023, overall offtake increased by 12 percent MoM on the back of low MS and HSD sales.
Conversely, HASCOL’s sales increased by 19 percent on a YoY basis in October. During the period in review, MS sales witnessed an increase of 53 percent YoY, reaching 0.02 million tons, while HSD sales showed a 38 percent YoY drop. The company’s sales jumped by 70 percent MoM to 0.04 million tons in October, compared to 0.02 million tons in September 2023.
FY24 oil sales may see further drops this financial year, mainly due to the overall slowdown in the economy. Demand will continue to remain stunted due to elevated petroleum prices.
Source: Pro Pakistani