Sale of total petroleum products in Pakistan clocked in at 1.26 million tons in October, a decline of over 24% year-on-year, amid the economic slowdown and rise in prices.
The decline in sales “can be attributed to several factors, including the increased prices of petroleum products, a general economic slowdown, and a reduction in consumption of furnace oil (FO) due to the reliance on new coal-based power plants”, said Arif Habib Limited (AHL) in a note on Thursday.
FO sales nosedived by 74% YoY in October 2023, amounting to 0.05 million tons.
Sale of MS (petrol) fell 15% YoY, clocking in at 0.58 million tons in October. Volume of High-Speed Diesel (HSD) plunged by 21% YoY, settling at 0.56 million in October 2023.
However, on a month-on-month basis, POL products offtake witnessed an increase of nearly 19% during October.
Volumes of MS inched improved 12%, whereas HSD offtake increased by 42%. The monthly rise comes on account of “a decline in MS and HSD prices,” said AHL.
Meanwhile, FO sales registered a decline of 37% MoM.
During the first four months of FY24, sales of total petroleum products dropped by 17% YoY to 5.08 million tons compared to 6.15 million tons in the same period last year.
Product-wise data showed a decline in all categories; the offtake of MS, HSD and FO settled at 2.43 million tons, 2 million tons and 0.4 million tons, respectively, reflecting a decline of 4%, 8% and 66%.
Company-wise, PSO’s offtake depicted a drop of 26% YoY in October 2023, which was majorly contributed by a decrease in sales of FO by 95% YoY, while MS sales registered a decline of 14% YoY. HSD sales of PSO also plunged 20% YoY.
Similarly, sales of Attock Petroleum Limited (APL) and Shell Pakistan Limited (SHEL) decreased by 10% and 29% YoY, respectively, amid a fall in sales of all products.
However, Hascol Petroleum Limited (HASCOL) sales witnessed an increase of 19% YoY.