KARACHI: The sales of petroleum products in Pakistan declined by 27 percent on year-on-year basis to 16.6 million tons during FY23.
Analysts said higher petroleum product prices and overall slowdown in economy have made a dent on demand of petroleum products in the local market.
This was the lowest sales number of petroleum products since FY06, excluding the Covid year of FY20. In FY06 petroleum products sales were recorded at 14.6 million tons, according to Pakistan Energy Yearbook.
Product-wise FO and HSD have witnessed major drop with a decline of 49 percent and 28 percent YoY respectively, while MS sales declined by 17 percent YoY in FY23.
HSD and MS sales declined due to higher product prices in FY23, Nasheed Malik at Topline Securities said adding that the sales of FO declined due to lower demand from power generation.
HSD sale price stood at an average of Rs 255/liter in FY23 compared to average price of Rs 145/liter in FY22 with an increase of 76 percent YoY.
On the other hand, MS sale price stood at an average of Rs 245/liter in FY23 compared to average price of Rs 148/liter in FY22 with an increase of 66 percent YoY.
OMC sales (Excluding Furnace Oil) stood at 14.5 million tons in FY23 which was a decline of 22 percent YoY. This was the lowest number since FY15 (Ex-Covid).
In FY23, PSO market share declined slightly to 50 percent compared to 51 percent in FY22. Slight decline in PSO market share is mainly due to FO, with sales declining by 64 percent versus industry decline of 49 percent. While SHEL market share stood at 7.6 percent in FY23 against 7.7 percent in FY22 and APL share stood at 9.6 percent in FY23 against 9.3 percent in FY22.
The sales of petroleum products in June 2023 clocked in at 1.3 million tons, down 31 percent YoY, however, up by 4 percent on MoM basis.
Increase was mainly driven by MS increasing by 7.0 percent MoM and Furnace Oil (FO) by 10 percent MoM. HSD sales however, remained flat.
MS sales for June-23 increased by 7.0 percent MoM to 0.64 million tons. This was mainly due to seasonal effect of holidays and summer vacations and slightly lower MoM prices. The sales of FO increased by 10 percent MoM basis to 100,000 tons due to higher demand for power generation.
Total oil sales excluding furnace oil clocked in at 1.2 million tons in June-23, down 16 percent YoY and up 3.0 percent on MoM.
Among listed entities, Pakistan State Oil (PSO) sales for June-23 declined by 38 percent YoY to 646,000 tons. This was due to lower sales in FO (down 97 percent YoY) followed by HSD (down 22 percent YoY).
Shell Pakistan sales for June-23 decreased by 37 percent YoY to 95,000 tons. This was due to 53 percent YoY decline in HSD sales and 20 percent decline in MS sales, while, Attock Petroleum (APL) sales declined by 26 percent YoY to 150,000 tons. This was due to 46 percent YoY decline in FO, 21 percent in HSD and 7 percent in MS.
PSO market share for June-23 stood at 48 percent versus 53 percent in June-22 and 46 percent in May-23. SHEL share for June-23 stood at 7.1 percent against 7.9 percent in June-22 and 6.9 percent in May-23. APL share for June-23 stood at 11.2 percent against 10.4 percent in June-22 and 9.5 percent in May-23.
In the 4QFY23, OMC sales stood at 3.8 million tons which was an increase of 1.0 percent on QoQ and a decline of 40 percent compared to the same quarter of FY22.
Copyright Business Recorder, 2023
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