PSO, Shell and Attock Suffer as Petroleum Sales Take a Massive Dip

Pakistan’s petroleum sales witnessed a significant decline of 46 percent on a year-over-year (YoY) basis and stood at 1.17 million tons during April 2023 compared to 2.18 million tons during April 2022.

The total sales volume in July-April 2022-23 (10MFY23) declined by 24 percent YoY to reach 13.97 million tons, according to data by Arif Habib Limited (AHL).

Furnace Oil (FO) sales plummeted by 83 percent YoY, while High-Speed Diesel (HSD) offtake slid by 50 percent on a YoY basis in April. The sales of Motor Spirit (MS) also witnessed a decline of 24 percent YoY.

The decline in diesel sales across all markets suggests that transportation and industrial activities were down across the board due to the very long Eid holidays and overall stunted work during Ramazan. Smuggling activities at borders refused to slow down but didn’t increase massively, hence the contribution of smuggled diesel/petrol to the local fuel utility wasn’t extraordinary.

On a month-over-month (MoM) basis, the overall fuel sales showed an increase of 6 percent.

10-Month Figures

During the 10 months of the financial year 2022-23 (FY23), MS petrol sales witnessed a decline of 17 percent YoY, reaching 6.17 million tons. HSD sales suffered the second biggest blow with a decline of 28 percent on a YoY basis, while FO sails slid by 40 percent YoY.

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Pakistan’s petroleum sales witnessed a significant decline of 46 percent on a year-over-year (YoY) basis and stood at 1.17 million tons during April 2023 compared to 2.18 million tons during April 2022.

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The total sales volume in July-April 2022-23 (10MFY23) declined by 24 percent YoY to reach 13.97 million tons, according to data by Arif Habib Limited (AHL).

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Furnace Oil (FO) sales plummeted by 83 percent YoY, while High-Speed Diesel (HSD) offtake slid by 50 percent on a YoY basis in April. The sales of Motor Spirit (MS) also witnessed a decline of 24 percent YoY.

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The decline in diesel sales across all markets suggests that transportation and industrial activities were down across the board due to the very long Eid holidays and overall stunted work during Ramazan. Smuggling activities at borders refused to slow down but didn’t increase massively, hence the contribution of smuggled diesel/petrol to the local fuel utility wasn’t extraordinary.

On a month-over-month (MoM) basis, the overall fuel sales showed an increase of 6 percent.

10-Month Figures

During the 10 months of the financial year 2022-23 (FY23), MS petrol sales witnessed a decline of 17 percent YoY, reaching 6.17 million tons. HSD sales suffered the second biggest blow with a decline of 28 percent on a YoY basis, while FO sails slid by 40 percent YoY.

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Company-Wise Sales

The company-wise analysis shows that Pakistan State Oil (PSO) sales declined by 53 percent YoY in April 2023. Under the government-run entity, MS sales witnessed a decline of 22 percent YoY, reaching 0.34 million tons. HSD sales declined by 52 percent on a YoY basis, while FO sales collapsed by 98 percent YoY. Meanwhile, the overall sales volume under PSO during 10MFY23 declined by 25 percent YoY to 7.06 million tons.

Sales under Attock Petroleum Ltd. (APL) registered a significant decline of 31 percent on a YoY basis in April 2023 on the back of decreased FO, HSD, and MS sales by 35 percent, 44 percent, and 14 percent, respectively. During July-April FY23, overall sales took a 22 percent hit amid stunted offtake of MS, HSD, and FO.

Shell’s offtake declined by 43 percent YoY in April 2023 as the sales of HSD and MS dipped by 60 percent and 28 percent, respectively. For 10MFY23, overall offtake dropped by 25 percent YoY on the back of low MS and HSD sales.

Conversely, HASCOL’s sales increased by a massive 308 percent on a YoY basis in April. During the period in review, MS sales witnessed an increase of 419 percent YoY, reaching 0.01 million tons, while HSD sales showed a 137 percent YoY growth. The company’s sales increased by 19 percent YoY to 0.29 million tons for the 10 months that ended on April 30th, 2022-23.

Overall FY23 oil sales may drop by roughly 25 percent YoY, mainly due to the overall slowdown in the economy. Demand will continue to remain stunted due to elevated inflation and the inability of the government to provide any relief to consumers.

Source: Pro Pakistani

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