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The furnace oil sales have declined by 31 percent on year-on-year basis in February 2019 due to its lower consumption in power generation sector. Total oil sales in the country posted decline of 2 percent during this month. However, MOGAS sales posted 10-month high growth of 16 percent in expectation of rise in petrol prices, analysts said.
Diesel sales decline was restricted to 1.0 percent against average decline of 22 percent in 7 months of FY19 amidst its sales to security forces due to the recent armed conflict between India and Pakistan. Among Companies, APL outperformed in terms of overall volumes and posted growth of 3 percent to 143,000 tons during February 2019 while PSO and Hascol posted decline of 9 percent and 7 percent respectively.
Product wise, GO (unlisted company) remained top performer in MS oil sales and gained 2.3ppts in its market share to 8 percent. On HSD front BYCO outperformed by gaining 1.7ppt in its market share to 7.5 percent. Key Risks to OMCs includes slower than expected decline in economy, higher inventory losses and phase out of FO earlier than expectations, an analyst at Topline Securities said.

Copyright Business Recorder, 2019

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