Petroleum Sales in Pakistan Fall by 6% in July
Pakistan’s petroleum sales witnessed a decline of 6 percent on a year-over-year (YoY) basis and stood at 1.35 million tons in July 2023 compared to 1.44 million tons in the same period last year.
During the month of July 2023, OMC industry sales observed no change month-on-month (MoM) and were stable, according to Arif Habib Limited.
July’s drop comes after the sector reported its lowest-ever sales of 16.6 million tons in FY23 since available data (FY07).
July Figures
During the month, MS petrol sales witnessed an increase of 10 percent YoY, reaching 0.66 million tons. HSD sales were a little better off with a growth of 11 percent YoY, while FO sales were poor, falling 59 percent YoY to 0.14 million tons.
The decline in FO sales across all markets suggests low FO-based power generation since producers have been running plants with other stocks of fuel after furnace oil was earlier exported at a loss as companies had then refused to pick up the fuel from refineries.
Other reasons may include the economic slowdown witnessed since April 2022 and the high retail prices of petroleum products.
Company-Wise Sales
The company-wise analysis shows that Pakistan State Oil (PSO) sales declined by 11 percent YoY from 0.76 million tons to 0.68 million tons in July 2023. Under the government-run entity, MS sales witnessed a growth of 21 percent YoY, reaching 0.31 million tons. HSD sales improved by 18 percent on a YoY basis, while FO sales collapsed by 82 percent YoY.
Sales under Attock Petroleum Ltd. (APL) registered a decline of 7 percent on a YoY basis in July on the back of decreased FO and HSD sales by 26 percent and 9 percent, respectively. Similarly, overall sales fell by 12 percent MoM during July 2023.
Shell’s offtake declined by 7 percent YoY in July 2023 as the sales of HSD and MS dipped by 7 percent and 4 percent YoY, respectively. Compared to June 2023, overall offtake dropped by 1 percent MoM on the back of low MS and HSD sales.
Conversely, HASCOL’s sales increased by a massive 103 percent on a YoY basis in July. During the period in review, MS sales witnessed an increase of 58 percent YoY, reaching 0.02 million tons, while HSD sales showed a 220 percent YoY growth. Conversely, the company’s sales dropped by 27 percent MoM to 0.04 million tons in July, compared to 0.06 million tons in June 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