Sales of oil marketing companies (OMCs) took a hit after Pakistan’s petroleum products bore the brunt of economic slowdown in November.

Oil sales in Pakistan in November 2022 decreased 11.5% on a year-on-year (YoY) basis to 1.55 million tons, as compared to 1.75 million tons recorded in the same month last year, showed data by brokerage house Arif Habib Limited (AHL) on Friday.

Experts attributed the drop in POL sales to an overall economic slowdown in the country.

The sales of high-speed diesel (HSD) and motor spirit (MS) decreased by 18% and 3%, respectively, on a yearly basis, while sales of furnace oil (FO) declined by 22%.

As compared to the previous month, MS sales declined by 1% MoM, while HSD sales recorded a drop of 6% MoM, and FO sales were down 33% MoM.

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Among listed entities, Pakistan State Oil (PSO) sales decreased 5% MoM and 2% YoY to 0.81 million tons.

Attock Petroleum (APL) sales declined by 4% MoM and 21% YoY. Shell Pakistan sales dropped by 10% MoM and by 21% YoY.

During 5MFY23, oil sales decreased by 20% YoY to 7.7 million tons due to an economic slowdown, with a decline visible in all major petroleum products.

In terms of products, FO and HSD witnessed the biggest drops, with a decline of 26% and 24% YoY, respectively, while MS sales declined by 16% YoY.

Earlier on Thursday, the State Bank of Pakistan (SBP) strongly rebutted placing any restriction on Letters of Credit (LCs) for import of oil, LNG and petroleum products.

The SBP clarified that it has not placed any restriction (verbal or otherwise) on opening of LCs or contracts for import of crude oil, LNG and petroleum products. Such misinformation is being spread with ulterior motives to create uncertainty in the market, the SBP said.