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Petroleum Sales Hit 6-Month Low

Petroleum Sales Hit 6-Month Low

The petroleum products sales in April 2024 settled at 1.10 million tons, indicating a decline of 6 percent Year-on-Year (YoY). This reduction in sales is attributed to several factors, including higher availability of smuggled petroleum products from Iran, an increase in the price of Motor Spirit (MS), and lower dependency on Furnace Oil (FO)-based power plants.

According to Arif Habib Limited, petroleum sales are at their lowest level in 6 months. Dispatches of MS decreased by 9 percent in April 2024, settling at 0.53 million tons, while FO sales plunged by 59 percent YoY to 0.03 million tons during the same period. However, High-Speed Diesel (HSD) sales volumes witnessed a growth of 2 percent YoY, reaching 0.47 million tons amid a fall in the price of HSD.

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On a Month-on-Month (MoM) basis, petroleum sales plummeted by 4 percent in April 2024 due to the aforementioned reasons. MS sales descended by 7 percent MoM, while FO dispatches plunged by 33 percent MoM. However, the offtake of HSD witnessed an uptick of 2 percent MoM in March 2024.

During the 10 months of Fiscal Year 2024 (10MFY24), total sales of petroleum products reduced by 11 percent YoY to 12.44 million tons compared to 13.97 million tons in the same period last year. Product-wise data shows a fall in all categories, with the volumetric sales of MS, HSD, and FO at 5.83 million tons, 5.05 million tons, and 0.87 million tons, respectively.

On a company-wide basis, the dispatches of Pakistan State Oil (PSO) tumbled by 3 percent YoY in April 2024, with declines in sales of MS, HSD, and FO by 7 percent, 4 percent, and 22 percent YoY, respectively. Similarly, sales of PSO, Shell Pakistan (SHEL), Attock Petroleum Limited (APL), and Hascol Petroleum Limited (HASCOL) reduced by 3 percent, 7 percent, 18 percent, and 23 percent YoY, respectively during April 2024.

During 10MFY24, petroleum sales of APL, PSO, and SHEL decreased by 5 percent, 12 percent, and 15 percent YoY, respectively. However, HASCOL’s sales climbed up by 5 percent YoY.

Furthermore, during 10MFY24, PSO’s market share dropped by 0.5 percent to 50.1 percent, while SHEL’s market share dropped by 0.4 percent to 7.3 percent. On the other hand, APL and HASCOL’s market shares increased to 10.0 percent and 2.5 percent, respectively. Meanwhile, the market share of other Oil Marketing Companies (OMCs) remained stable at 30.2 percent in 10MFY24.