KARACHI: Pakistan oil marketing companies (OMCs) sales decreased by 27 percent in the financial year 2023 as compared to the FY22, on higher petroleum prices and an overall economic slowdown in the country, a brokerage reported on Tuesday.
OMCs sales declined to 16.6 million tonnes in FY23, against 22.6 million tonnes recorded the year earlier, Topline Securities stated in a report.
The record of oil sales in FY23 is the lowest in last 17 years (excluding Covid year of FY20). In the financial year 2006, OMCs sales were recorded at 14.6 million tonnes, according to Pakistan Every Yearbook.
In FY23, OMCs witnessed a low demand on the back of higher prices of petroleum products and a slowdown in the economic activities.
Product wise, furnace oil (FO) and high speed diesel (HSD) witnessed a major drop with a decline of 49 percent and 28 percent year-on-year (YoY) respectively, while motor spirit (MS) sales declined by 17 percent YoY in FY23.
HSD and MS sales declined due to higher product prices in FY23, while FO declined on lower demand from power generation.
HSD sale price stood at an average of Rs255/liter in FY23 compared to average price of Rs145/liter in FY22 - an increase of 76 percent YoY.
On the other hand, MS sale price stood at an average of Rs245/liter in FY23 compared to average price of Rs148/liter in FY22 - an increase of 66 percent YoY.
OMC sales (excluding furnace oil) stood at 14.5 million tonnes in FY23, which is a decline of 22 percent YoY, and the lowest since FY15 (ex-Covid).
In FY23, PSO market share declined slightly to 50 percent compared to 51 percent in FY22. A slight decline in PSO market share is mainly due to FO, with sales declining by 64 percent vs industry decline of 49 percent.
SHEL market share stood at 7.6 percent vs. 7.7 percent in FY22, and APL share stood at 9.6 percent vs. 9.3 percent in FY22.
In June 2023, the oil sales clocked in at 1.3 million tonnes, down 31 percent YoY, and up by 4 percent month-on-month (MoM). The increase was mainly driven by MS increasing by 7 percent MoM and FO by 10 percent MoM. HSD sales remained flat.
MS sales for June’23 increased by 7 percent MoM to 0.64 million tonnes on a seasonal effect of holidays and summer vacations and slightly lower MoM prices. FO sales increased by 10 percent MoM to 100k tonnes on higher demand for power generation.
Total oil sales excluding furnace oil clocked in at 1.2 million tonnes in June’23, down 16 percent YoY and up 3 percent MoM.
Among listed entities, Pakistan State Oil (PSO) sales for June’23 declined by 38 percent YoY to 646k tonnes on the back of lower sales in FO (-97pc YoY) followed by HSD (-22pc YoY).
Shell Pakistan (SHEL) sales for June’23 decreased by 37 percent YoY to 95k tonnes on 53 percent YoY decline in HSD sales and 20 percent in MS sales.
Attock Petroleum (APL) sales declined by 26 percent YoY to 150k tonnes on 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 vs. 53 percent in June’22 and 46 percent in May’23. SHEL share for June’23 stood at 7.1 percent vs. 7.9 percent in June’22 and 6.9 percent in May’23. Whereas, APL share for June’23 stood at 11.2 percent vs. 10.4 percent in June’22 and 9.5 percent in May’23.
In 4QFY23, OMC sales stood at 3.8 million tonnes, with an increase of 1 percent quarter-on-quarter and a decline of 40 percent compared to 4QFY22.