KARACHI: Pakistan’s Oil Marketing Companies (OMCs) sales decreased by 14 percent on year-on-year basis to 1.21 million tons in August 2024.

The decrease in oil sales was due to monsoon season, and a 2.0 percent MoM rise, due to full working month unlike July which was affected due to Moharram holidays, experts said.

Total oil sales for the first two months of FY25 totalled at 2.4 million tons, a 12 percent YoY decline compared to 2.8 million tons in the same period in FY24.

Excluding Furnace Oil (Ex-FO) sales in August 2024 were 1.2 million tons, reflecting 11 percent YoY decrease but a 3.0 percent MoM rise. For the first two months of FY25, ex-FO sales totalled 2.3 million tons, a 9.0 percent YoY decline.

Product wise, Motor Spirit (MS) sales saw a decline of 7.0 percent YoY but a rise of 6.0 percent MoM to 625,000 tons in August 2024. This was due to reduction in petrol prices by Rs 14.64/litre to Rs 260.96/litre and resumption of activities i.e. start of school season and factors mentioned above, Myesha Sohail at Topline Securities said.

High-Speed Diesel (HSD) saw a 17 percent YoY and a 2.0 percent MoM fall. The fall is due to monsoon season, Myesha Sohail said.

FO sales for August 2024 fell by 45 percent YoY and 17 percent MoM to 65,000 tons. This decrease is due to lower power generation from FO-based power plants, Myesha Sohail said.

Among the listed entities, Attock Petroleum (APL) sales clocked in at 114,000 tons in August 2024, a 24 percent YoY fall primarily led by 63 percent YoY fall of FO sales, and a 12 percent MoM rise due to a 37 percent rise in FO sales.

Pakistan State Oil (PSO) saw a fall of 27 percent YoY and 3.0 percent MoM to 528,000 tons in August 2024. PSO’s market share in HSD and MS clocked in at 44.1 percent and 40.3 percent, down 192bps and 102bps MoM, respectively in August 2024. PSO’s overall market share has fallen from 46 percent in July 2024 to 43 percent in August 2024.

Shell Pakistan (SHEL) saw a 6.0 percent YoY fall and a 7.0 percent MoM rise to 92,000 tons. HASCOL sales clocked in at 42,000 tons, up 18 percent YoY and 9.0 percent MoM.

“Government set Petroleum Development Levy (PDL) collection target of Rs 1.28 trillion for FY25 of which Rs 166 billion (13 percent) has been collected, based on our calculation in first two months,” Myesha Sohail said.

Copyright Business Recorder, 2024